The Ministry of Oil of the Republic of Iraq has issued a call to several major American oil companies to take over operations at the West Qurna 2 oil field, located in the country’s south. This site, among the world’s largest, was previously managed by Russian company Lukoil, which has been subject to US economic sanctions since October.
In a statement released by the Iraqi authorities, the ministry confirmed that “all necessary measures” have been taken to facilitate this transfer and has formally invited “leading American oil groups” to submit bids. A ministry official stated that the selected bidder would directly replace Lukoil.
A strategic repositioning after sanctions
Lukoil was awarded the West Qurna 2 development contract in 2009, and production began in 2014. The field is considered strategic for Iraq’s export capacity, with crude oil accounting for 90% of the country’s public revenues. National output currently stands at 3.4 million barrels per day.
The ministry’s statement indicated that the entry of a US player “would benefit mutual interests” of both countries, contribute to “global market stability,” and ensure continuity in Iraq’s oil production. This initiative comes as the government seeks to strengthen US partnerships across key economic sectors.
ExxonMobil cited as potential successor
Several industry experts have named ExxonMobil, one of the world’s largest producers, as a likely contender. When approached for comment, the company declined to respond. ExxonMobil recently resumed operations in Iraq after a two-year hiatus, having signed a preliminary agreement in October concerning the Majnoon oil field, located in Basra province.
The reopening of Iraq’s oil sector to Western operators follows efforts to stabilise national production and attract new investment, particularly by upgrading its energy infrastructure.
Geopolitical context reshapes energy partnerships
Lukoil and Rosneft, Russia’s two largest oil producers, were targeted by US sanctions in response to the Russian Federation’s refusal to cease its military campaign in Ukraine. This regulatory environment has compelled several nations and operators to reassess contractual ties with Russian firms, including in the petroleum sector.
Iraq, a founding member of the Organization of the Petroleum Exporting Countries (OPEC), is emerging as a potential platform for major energy companies seeking opportunities in mature production zones.
