The fate of one of the largest oil fields in Iraq—and in the world—remains unresolved, nearly two months after the Russian company Lukoil announced it could no longer continue operating the field, prompting major American firms to express interest in acquiring the Russian company’s stake.
It’s highly likely that the U.S. companies ExxonMobil and Chevron will be the top contenders to take over the West Qurna-2 field, according to statements by Iraqi officials. Yet nothing has been finalized, even as we near the deadline of December 13 which was set by the U.S. Treasury Department for potential buyers to negotiate with Lukoil.
On Tuesday, an Iraqi government statement announced that Prime Minister Mohammed Shia al-Sudani had discussed with representatives from Chevron the possibility of cooperation concerning the West Qurna-2 field, which is operated by Lukoil and represents the Russian company’s largest foreign asset.
In response to Alhurra, Chevron sent a brief email stating that it “is committed to the laws and regulations governing its operations and does not comment on commercial matters.”
ExxonMobil, Lukoil, the U.S. State Department, and Iraq’s Oil Ministry did not respond to Alhurra’s inquiries on the matter.
Chevron and ExxonMobil are among the companies potentially bidding to purchase Lukoil’s overseas assets after U.S. sanctions were imposed on the Russian oil producer.
Last November, Lukoil declared force majeure at the giant West Qurna-2 field in Iraq, against the backdrop of U.S. sanctions issued under President Donald Trump’s efforts to end the war in Ukraine.
The West Qurna-2 field is located 65 kilometers northwest of Basra. It is one of the world’s largest oil fields and among Lukoil’s most important foreign assets, accounting for about nine percent of Iraq’s total oil production at 480,000 barrels per day.
“U.S. sanctions have made it extremely difficult for Iraq to continue normal financial and operational dealings with Lukoil, especially pertaining to field that represents nearly 10% of Iraq’s production,” Tatiana Mitrova of Columbia University’s Center on Global Energy Policy told Alhurra.
She believes that transferring ownership of the field to an American company would help Baghdad reduce the risk of exposure to secondary sanctions, ensure continued access to technology and capital, and send a signal to Washington that Iraq remains a strategic partner.
Domestically, she adds, such a move would “reassure markets and the Iraqi public that production and revenues from one of the country’s most prominent fields will be shielded from international political shockwaves.”
Earlier this month, Iraq’s Oil Ministry announced that it had invited several American oil companies to negotiate for the acquisition of West Qurna-2.
Prior to that, Iraq’s energy sector has this year gone through a notable shift as the government wooed U.S. oil companies.
In October, Prime Minister al-Sudani signed a preliminary agreement with ExxonMobil to develop the Majnoon field—one of the largest oil fields in the world, with reserves estimated at 12.6 billion barrels.
And before ExxonMobil, the Iraqi government contracted with Chevron in August to explore four blocks in Nasiriyah in the south and develop the Balad field in central Iraq. It also established joint cooperation venture between Baker Hughes and Iraq’s state-owned Halfaya company for gas development.
During 2024, Baghdad also signed a $12 million engineering contract with KBR for the Bin Omar field.
“Iraqi officials will welcome major investment from any American oil company, as it could entail deeper political engagement—or at least greater attention—from Washington. And it would certainly encourage other oil and gas companies to consider entering the Iraqi market,” Ben Cahill, director of the Center for Energy and Environmental Systems Analysis at the University of Texas at Austin, told Alhurra.
The benefits would not accrue solely to Iraq. The United States also stands to gain—economically and politically.
With biting international sanctions, Russia is finding it increasingly difficult to maintain its energy operations overseas, particularly in the Middle East—a region that became a strategic pillar of its oil expansion after 2000.
“Lukoil’s foreign portfolio is highly vulnerable. The company has a broad overseas presence in production and trading, including in the Middle East. If it is forced to sell its assets, it would signal that Russian oil firms will have to refocus their operations inside Russia,” Cahill added.
Mitrova notes that West Qurna-2 is “Lukoil’s largest foreign asset and a key symbol of Russia’s return to the Middle East after 2000. Its exit, whether forced or negotiated, would significantly shrink Russia’s presence in Iraq’s production sector and send a strong message to other governments in the region that working with Russian companies now carries major sanction risks.”
She describes Lukoil’s loss of operational control over West Qurna-2 as a “strategic setback” that will weaken Moscow’s influence inside OPEC’s second-largest producer, Iraq.
“More broadly, it will show how sanctions are not only reducing Russia’s export revenues but are gradually undermining its long-term assets in major oil-producing countries,” Mitrova added.
Ghassan Taqi
صحفي متخصص في الشؤون العراقية، يعمل في مؤسسة الشرق الأوسط للإرسال MBN منذ عام 2015. عمل سنوات مع إذاعة "أوروبا الحرة" ومؤسسات إعلامية عراقية وعربية.
