Iraq Invites U.S. Companies to Take Over Major Oil Field as Lukoil Faces Sanctions
Lukoil was awarded the development contract for West Qurna 2 in 2009 and began production in 2014.
ERBIL (Kurdistan24) – Iraq’s Ministry of Oil announced on Monday that it has formally invited several major American energy companies to submit bids to operate the West Qurna 2 oil field, one of the world’s largest, after years of management by Russia’s Lukoil—now under U.S. sanctions.
In its statement, the ministry said it had taken “all necessary measures to directly and exclusively invite several major American oil companies… to submit bids” for managing the giant field in southern Iraq. An oil ministry official told AFP that "The winner takes over as operator instead of Lukoil.”
Officials stressed that transferring management to a U.S. company “would benefit mutual interests, strengthen global market stability, and maintain Iraq’s oil production,” which is critical for the country’s economy.
Lukoil was awarded the development contract for West Qurna 2 in 2009 and began production in 2014. However, the company’s future in Iraq became uncertain after U.S. President Donald Trump announced new sanctions in October against Russian oil giants Lukoil and Rosneft, which took effect on November 21. The sanctions—among the strongest imposed by Washington since the start of the Ukraine war—have already forced major buyers of Russian oil to seek alternative suppliers.
In recent weeks, questions have circulated over Lukoil’s ability to continue managing the West Qurna 2 project. Several oil experts told AFP that ExxonMobil is a possible replacement, though the U.S. company declined to comment. ExxonMobil recently returned to Iraq after a two-year absence, signing an initial agreement in October that could pave the way for developing the Majnoon field in Basra.
Iraq, which has regained relative stability in recent years, is aiming to attract more foreign investment, particularly from the United States, to boost key sectors of its economy. As a founding member of OPEC, Iraq relies heavily on crude oil revenues, which account for 90 percent of the state budget. The country currently exports around 3.4 million barrels of oil per day.
West Qurna 2 is considered one of Iraq’s most prized oil assets, with reserves estimated at around 14 billion barrels. Its development has long attracted global interest due to its scale and strategic importance. Iraq’s effort to shift operators comes at a time when global energy markets are adjusting to geopolitical tensions, sanctions on Russian energy firms, and growing competition over long-term investments in major oil-producing regions.
Baghdad’s latest move signals its intention to safeguard production levels and reassure international partners of its commitment to maintaining stability on global oil markets. The invitation to American firms also reflects Iraq’s broader strategy of strengthening ties with U.S. companies as it seeks reliable partners to support its economic recovery and energy sector development.
