Lukoil and the Iraqi government extend contract.

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The largest Russian private oil producer Lukoil and the Iraqi Government have agreed to extend the contract for the Qurna Western-2
field for five years and to reduce the production on this oil field, indicates a Lukoil statement.

"The parties agreed to bring the level of 1.8 million to 1.2 million barrels per day target of production, from 13 to 19.5 years the period during which this level should be maintained and from 20 to 25 years the total duration of the contract", reads the press release on the signing of an amendment to the contract for the Qurna Western-2 field.

This amendment was signed Thursday in Baghdad between the CEO of Lukoil Vagit Alekperov and the public companies Iraqi North Oil Company and South Oil Company officials. The document also includes the sale of 18.75% stake of the project of Norwegian Statoil's to Lukoil.

One of the richest reserves of oil in the world, Qurna Western-2 is located 100 km northeast of Basra. In 2009, the consortium including Lukoil and Statoil won the tender for the exploitation of this oil field. Production is to start in 2013.