Russian oil major OAO Lukoil (LKOH.RS) said Thursday it has started the first production line at its Yuzhno Khylchuyu field located in the north of the Timan Pechora oil and gas province.
The field is developed by Naryanmarneftegaz, a joint-venture between Lukoil and ConocoPhillips (COP), in which the companies hold 70% and 30% respectively.
The first production line comes with 32 wells, an oil treatment unit, an oil desulfurization unit, a tank farm with the total volume of 40,000 cubic meters, a power supply complex with the rated capacity of 125 megawatts as well as other units, Lukoil said in a statement.
The second line - scheduled for December - will include additional 32 wells and a high-pressure compressor station as well as sulfur disposal and storage facilities.
Lukoil said it expects production from the field to reach more than 150,000 barrels a day in 2009.
Conoco President Jim Malva told a press conference that after years of operating in Russia, and investing billions of dollars in the process, his company is seeking new partners for its development, Interfax reported.
Conoco, which owns 20% of Lukoil, could start partnerships with state-owned pair OAO Gazprom (GAZP.RS) and OAO Rosneft (ROSN.RS), Malva said.
The Russian government generally insists foreign oil producers work with state-controlled producers.
As regards Lukoil, Conoco expects to take part in a tender for the right to develop Iraq's Western Qurna-2 field jointly with the Russian company, Malva said. He expects the tender for West Qurna to be held next year.