The Iraqi government has approved an amicable settlement with Lukoil to transfer oil production operations at the West Qurna-2 field, where the Russian company holds a management stake, to the local Basra Oil Company (Iraqi News Agency, 18/02/2026). This follows a January 2026 decision by the Ministry of Oil to take control of the field in order to avoid potential production disruptions resulting from sanctions imposed on Lukoil (KEI, 12/01/2026).
The West Qurna-2 field produces over 460 kb/d, nearly 0.5% of global oil output and about 10% of Iraq’s total crude production. The field’s recoverable reserves are estimated at approximately 14 Gbl. Following UK and U.S. sanctions imposed in October 2025, Lukoil declared force majeure on the West Qurna-2 contract. The West Qurna-2 field was Lukoil’s largest foreign asset, in which it held a 75% stake.
The sanctions also compelled the company to announce plans to divest its international assets. In late January 2026, Lukoil stated that it had reached an agreement to sell all its international assets (except its operations in Kazakhstan) to the US investment firm Carlyle Group, while continuing negotiations with other potential buyers (KEI, 30/01/2026).