Iraq has approved the nationalisation of petroleum operations at the West Qurna 2 oilfield, one of the world’s largest oilfields, producing around 470 kb/d, according to the provisions of a contract signed with Russia’s Lukoil, which is subject to U.S. sanctions (Reuters, 08/01/2026).
An official at the Oil Ministry stated that Iraq decided to take control of the field in order to avoid potential production disruptions resulting from sanctions imposed on Lukoil.
- Lukoil declared force majeure at West Qurna 2 in November 2025, after being sanctioned by the US administration alongside Rosneft. The West Qurna 2 oilfield represented Lukoil’s largest foreign asset, in which it held a 75% stake.
- In December 2025, the Iraqi government announced that it had invited US companies to bid for participation in the oilfield. ExxonMobil reportedly approached the Iraqi Oil Ministry to express interest in acquiring Lukoil’s majority stake in West Qurna 2. The field accounts for approximately 0.5% of global oil supply and 9% of Iraq’s total oil output (KEI, 02/12/2025).
The state-owned Basra Oil Company (BOC) has been approved by the Iraq’s Council of Ministers to assume responsibility for managing petroleum operations at the West Qurna 2 oilfield (Iraqi Business News, 08/01/2026).