Iraq’s Oil Ministry has approved the sale of Norwegian oil firm Statoil’s stake in the West Qurna Phase-2 oil field development, allowing the company to exit concession.

Statoil holds a 18.75 per cent stake in the field’s development, along with Russia’s Lukoil, the operator and state-owned South Oil Company (SOC).

The Russian firm is expected to take over Statoil’s stake, increasing its share to 75 per cent, according to Reuters news agency.

“Lukoil and the Iraqi authorities have previously confirmed that they have initiated the process [of Statoil’s asset sale], and Statoil does not wish to comment beyond that,” a company spokesman told MEED.

The partners were awarded the development contract for the West Qurna-2 field in Iraq’s second oil and gas licensing round in 2010. The partners plan to begin production in 2013 at 150,000 barrels a day (b/d), rising to 400,000 b/d by 2014. They agreed to a remuneration fee of just $1.15 a barrel, the lowest fee accepted by international oil companies in Iraq’s three licensing rounds.

Lukoil is in the process of awarding a number of engineering, procurement and construction (EPC) contracts at the field and has already appointed US oil field services firm, Baker Hughes to begin drilling.

Lukoil has previously said it was interested in expanding its Iraq investments. In November it mooted the possibility of buying into the nearby West Qurna Phase-1 field development with the US’ ExxonMobil and UK’s Shell.