Statoil has, in cooperation with Lukoil (operator) and Iraqi partners, signed a contract for development and production of the West Qurna 2 field. The parties to the contract are the state-owned Iraqi oil company South Oil Company and a consortium of contractors including the state-owned Iraqi oil company North Oil Company (25%), Lukoil (56.25%) and Statoil (18.75%).

Drilling on West Qurna 2 will start in 2011 and first production is expected at the end of 2012. The field is expected to be in full production for 13 years from 2017. The field development plan provides for further seismic acquisition and drilling of more than 500 wells. The contract validity period is 20 years, with an option for a five-year extension.

Including recoverable reserves of around 13 billion barrels, the West Qurna 2 field is located in the southern part of Iraq, 65 kilometres north-west of the large seaport of Basra.