ERBIL, Kurdistan Region - Iraq’s oil ministry said on Monday that it is seeking to bring in major US companies to take over management of the West Qurna-2 oil field in northwestern Basra, which is currently operated by Russia’s Lukoil.
The ministry said it is “directing exclusive invitations to a number of major American oil companies and entering into direct negotiations with them to submit their bids and compete transparently among themselves with the aim of transferring management of the West Qurna-2 field to one of these companies.”
A final selection will be made after a “transparent competition” based on the ministry’s technical and commercial standards for awarding oil field development contracts, it added.
The shift comes after US President Donald Trump imposed sanctions in October on Russia’s Rosneft and Lukoil, accusing Moscow of lacking “a serious commitment” to end the war in Ukraine. The Treasury Department later issued limited licenses in mid-November, allowing some Lukoil operations abroad to continue.
Iraqi Prime Minister Mohammed Shia’ al-Sudani met Lukoil founder Vagit Alekperov in mid-November to discuss a “solution” to the impact of sanctions on the company and Iraq’s production.
Around the same time, Reuters reported that Lukoil had declared force majeure at West Qurna-2, located about 65 kilometers northwest of Basra. The field is one of Lukoil’s most valuable foreign assets, generating roughly 480,000 barrels per day.
Russia’s ambassador to Iraq, Elbrus Kutrashev, told Rudaw in November that Russian energy companies - including Lukoil, Gazprom, and Rosneft - remain active in Iraq and the Kurdistan Region despite what he called “illegal” Western sanctions, saying Lukoil’s investments in Iraq exceed $11 billion.
Transferring management to a US firm would “serve mutual interests, enhance the stability of global markets, ensure the continuation of Iraqi oil production operations and its market shares, and maintain state revenues,” Iraq’s oil ministry said, adding that the move would strengthen economic ties with Washington and help bring modern technology into Iraq’s energy sector.
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