Lukoil has extracted first oil at the Yu. Korchagin field in the Caspian Sea.

The company spent a total of R34.4bn ($1.17bn) on field development and expects to extract 343,000 tonnes of oil by the end of 2010.

The maximum expected output from the field is 2.5 million tonnes of oil and one billion cubic metres of gas a year.

The Yu. Korchagin field was discovered by Lukoil in 2000 and its hydrocarbon reserves exceed 270 million barrels of oil equivalent.

Vladimir Putin, Chairman of the Government of the Russian Federation, participated in the ceremony dedicated to the commissioning of the field.