Lukoil, in tandem with Norwegian firm StatoilHydro, has won the biggest contract up for grabs in the latest round of Iraqi oil auctions - a stake in the West Qurna-2 field, with a potential yield of 1.8 million barrels a day.
The two companies will share $1.15 per barrel extracted for the field in the Basra province - with Lukoil taking a majority stake in the consortium.
The Russian company originally signed a contract to develop West Qurna-1 with Saddam Hussein's regime - but that deal was frozen in 2002 with Lukoil claiming sanctions prevented it from operating in Iraq. Last year a working group was established to rework that deal.
Gazprom Neft won the rights to a separate Iraqi field, the Financial Times reported, adding that American firms had been almost shut out.