Lukoil said commercial production has started at the Vladimir Filanovsky field in the Caspian Sea.
It was launched by President Vladimir Putin today.
The field was discovered by LukOil in 2005 and is the largest discovery made for the past 25 years.
Two horizontal production wells have been drilled to date yielding a total daily flow rate of more than six thousand tons of oil.
Construction of a third well is underway.
The sweet light crude oil lifted from the wells is transported via a subsea pipeline to the onshore stroage facilties and fed into the Caspian Pipeline Consortium system for further exports.
Lukoil says the high quality of crude oil ensures a price premium to the Urals bend.