The Iraqi Oil Ministry will in December approve contractors picked by Russia's OAO Lukoil Holdings (LKOH.RS) to work on the West Qurna-2 project, Lukoil's chief executive Vagit Alekperov said Friday, and he reiterated that production there will likely start in late 2013.

Lukoil, like other international oil companies working in Iraq , has faced problems obtaining government approval for contractors at its oil projects.

"The Iraqi oil minister has confirmed us that all issues regarding approval of our tender proposals will be concluded in December," Alekperov told journalists at a Moscow conference.

Lukoil and Norway 's Statoil ASA (STO) were awarded a 20-year service contract for West Qurna Phase 2 in Iraq 's second licensing round held in December 2009. The companies promised to get the southern field pumping at a rate of 1.8 million barrels a day for payment of $1.15 a barrel with first oil planned for August 2012, but the project has been pushed back partly because the Iraqi government has been slow to approve contractors.

"We expect to start production in late 2013," Alekperov said. He reiterated that Lukoil has started exploration drilling at the field.

Contractors have been picked for crude oil processing facilities, power station, export pipeline and storage tanks. The contractors have been approved by Iraq 's South Oil Co., but are now pending approval from the Oil Ministry.
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