Azernews.Az

AMMAN – Russia's Lukoil OAO awarded Friday a mine clearing contract at Iraq's West Qurna Phase 2 oil field to G4S Risk Management, a division of the London-based G4S Ordnance Management, Lukoil said in a statement sent to Dow Jones Newswires in Amman.

Lukoil, however, didn't release the cost of the deal but said work should finish early 2011 where oil drilling would start at the project.

It said 60 foreign and Iraqi experts as well as 40 sets of search equipment and 9 vehicles will be engaged in the de-mining activities.

According to the Iraqi Regional Mine Action Committee, more than 27 million unexploded shells and mines remain on Iraq's territory from its war with Iran in the 1980s. However, the West Qurna Phase 2 area isn't heavily infested with mines, Iraqi authorities said.

The Russian company along with Norway's Statoil ASA won the right to develop the 13-billion barrel West Qurna Phase 2 at Iraq's second postwar licensing auction held in Baghdad in December last year.

Under the terms of the 20-year-long service contract, Lukoil and Statoil are required to pump at a rate of 1.8 million barrels a day for payment of $1.15 a barrel. That production target needs to be reached in 2017.

Lukoil holds a 56.25% stake in the project, Statoil 18.75% and the Iraqi state company holds the remaining 25%.

Undeterred by the current political situation in Iraq, Lukoil has shown readiness to proceed with its efforts to develop the field. It has issued tenders to drill new wells and carry out 3D seismic survey.