ConocoPhillips, Houston, (NYSE: COP) and Russia-based Lukoil (LSE: LKOD) have finalized the OOO Naryanmarneftegaz joint venture to develop resources in the northwest Arctic Russia. ConocoPhillips has a 30% interest in the joint venture. The amount of the transaction involving acquisition of this interest is approximately US$500 million. The companies will govern the joint venture 50/50. The joint venture is expected to be producing and marketing approximately 200,000 barrels of oil equivalent per day at peak. "This joint venture will provide ConocoPhillips with the benefits of involvement across the entire value chain in an area that holds several important development opportunities," says Bill Berry, executive vice president, exploration and production, for ConocoPhillips. "Lukoil has a strong license position in the region and significant experience in developing oil and gas resources in a challenging, remote Arctic environment. We look forward to working as partners to open an important new energy-producing region in Russia." The Naryanmarneftegaz joint venture is part of a larger strategic alliance between ConocoPhillips and Lukoil that was formed on Sept. 29. Through this alliance, ConocoPhillips had acquired an 11.3% ownership of Lukoil's ordinary shares by March 31, 2005. In accordance with the shareholder agreement, ConocoPhillips may increase its total ownership stake in Lukoil up to an aggregate ownership interest of 20%.