Iraq's Oil Ministry has launched a formal process to invite a handful of major US oil companies to directly negotiate the takeover of the 75 percent stake in the West Qurna-2 oil field - currently held by Lukoil - following international sanctions imposed on the Russian company. The ministry's announcement emphasises that transferring control to a US operator would support global market stability while preserving Iraq's vital oil output and revenues.

The ministry has refrained from naming specific firms or stipulating a timeline, but sources close to the process indicate that ExxonMobil and Chevron are among those under consideration. Industry insiders note that the sanctions on Lukoil, triggered in October 2025 by Washington, forced a rapid reassessment of its global portfolio - making West Qurna-2 one of the most strategically important assets up for grabs.

Lukoil secured the concession to develop West Qurna-2 in 2009 under a Technical Services Contract, beginning production around 2014. The field holds an estimated 14 billion barrels of recoverable reserves and has been delivering approximately 460,000 to 480,000 barrels per day - constituting nearly 9 to 10 percent of Iraq's total crude output. That makes it a cornerstone of Iraq's oil exports and a significant contributor to state revenues, which remain heavily reliant on oil sales.

The decision to court US bidders comes after Lukoil declared force majeure on the field's operations in early November, citing sanctions that disrupted its ability to transfer funds and maintain normal operations. Iraq responded by stepping in to pay arrears owed to local staff and arranging December salaries in Iraqi dinars in a bid to prevent operational disruptions. Officials described the state's intervention as critical to ensuring uninterrupted production.

With Lukoil's attempt to divest its assets - including West Qurna-2 - encountering obstacles, Iraq's Oil Ministry said the transfer would be conducted through a competitive and transparent process. While ExxonMobil and Chevron have expressed interest in parts of Lukoil's international portfolio, including the Iraqi field, neither company has confirmed participation. Observers suggest that any new operator would likely seek improved terms, particularly for developing the deeper Yamama formation, to make the investment economically viable given the low remuneration rates under the current contract.

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