UPDATE 1-Japan, Russia to co-develop oil fields-Nikkei

May 12 (Reuters) - Japan and Russia plan to sign an agreement, as early as Tuesday, to jointly develop oil fields in Eastern Siberia, the Nikkei business daily reported.

The agreement is expected to involve two oil fields in central part of the Russian region of Irkutsk.

Developing the fields will cost an estimated 15 billion yen for the period leading up to commercial production alone, the daily said.

The project will be led by a joint venture between Japan Oil, Gas and Metals National Corp., or JOGMEC, and Irkutsk Oil Co. The Japanese government-owned company is expected to take a 49 percent stake and the Russian partner the remainder.

With the goal of starting full-scale production as early as 2013, the joint venture will kick off survey and test drilling in 2010 or later.

JOGMEC will transfer its stake to Japanese private-sector companies, once commercial production is deemed feasible. (Reporting by Sweta Singh in Bangalore; Editing by Jarshad Kakkrakandy)