U.S. oil major ConocoPhillips (COP) and Russian oil firm OAO Lukoil Holdings (LKOH.RS) have agreed to accept the terms set by Iraq to develop the West Qurna-1 field, a Lukoil spokesman said Tuesday.

In a joint bid, the two companies have accepted the $1.90 a barrel fee that Iraq's Oil Ministry initially proposed in an auction in June for the West Qurna field.

A new licensing round is planned for later this year.

West Qurna-1 has proven crude oil reserves of 8.6 billion barrels.

Company Web site: www.lukoil.com

-By Jacob Gronholt-Pedersen, Dow Jones Newswires; +7 495 937 8445; jacob.pedersen@dowjones.com