Iraq inks oil deal with Lukoil

consortium led by Russia's private oil giant Lukoil has inked preliminary deal with Iraq to develop the prized West Qurna Phase 2 field. Lukoil had partnered with Norway's Statiol ASA to bid to develop the 12.88 billion barrel southern oil field, the crown jewel of the 15 fields offered during Iraq's second postwar oil licensing round held earlier this month.The 20-year deal was signed Tuesday but still needs to be approved by Iraq's Cabinet. The deal was a coup for Lukoil, which was awarded the rights to develop the field in 1997 by Saddam Hussein only to see the contract rescinded five years later by the Iraqi dictator.The companies aim to produce 1.8 million barrels per day in 13 years, and will receive $1.15 per barrel produced.