After sanctioning Lukoil, US pressures Iraq for control of oilfield stake
Iran Press TV
Wednesday, 03 December 2025 9:39 AM
American corporation ExxonMobil has reportedly reached out to Iraq's Oil Ministry in a bid to purchase Russian energy firm Lukoil's majority stake in one of the Arab country's main oil fields amid Washington's long-standing sanctions against Moscow over the war in Ukraine.
Five Iraqi official sources with direct knowledge of the matter told Reuters that ExxonMobil had expressed its interest in buying Lukoil's majority stake in the giant West Qurna 2 oilfield near the southern Iraqi city of Basra.
"Exxon is our preferred option to take over from Lukoil. The company has the capacity and experience needed to manage a field as large and complex as West Qurna 2," a senior Iraqi oil official told the agency.
Another senior Oil Ministry official said the same thing in a statement to Reuters, with the news agency stressing that the US energy giant declined to comment, while Lukoil did not respond to a request for comment.
As one of the world's largest oil fields with 14 billion barrels in reserves, West Qurna 2 produces about 480,000 barrels per day, accounting for 9-10% of Iraq's production and 15% of its exports.
Lukoil currently holds a 75% stake, while Iraq's North Oil Company owns 25%. The field has produced over one billion barrels and generated more than $50 billion for Iraq.
The Iraqi Oil Ministry said on Monday that it has invited several US oil companies to begin talks on taking over the operation of West Qurna 2 as the US Treasury issued a set of licenses, one of which authorized potential buyers to talk to Lukoil until December 13.
ExxonMobil operated the nearby West Qurna 1 project for years before exiting in 2024, citing unfavorable contract terms and political instability. The American multinational oil and gas corporation signed a non-binding deal with the Iraqi government last month to aid the development of the giant Majnoon oil field and expand oil exports.
Baghdad signed several new contracts with US companies in recent months in a push to boost its energy industry and bring back more international firms to the country.
Last month, a Reuters report said ExxonMobil was joining Chevron - its main competitor - in considering options to purchase parts of the Lukoil portfolio, following heavy US sanctions on the Russian oil firm.
As a result of the sanctions, Lukoil was forced to declare force majeure at West Qurna 2 on November 4 after the US Treasury targeted Lukoil and another Russian oil firm, Rosneft, with heavy sanctions in a bid to pressure Moscow in talks to end the Ukraine war.
Washington is also threatening secondary sanctions against foreign financial institutions that do business with the two Russian energy firms, including banks that facilitate sales of Russian oil in China, India, and Turkey.
The United States has imposed extensive sanctions on Russia since the latter's 2022 "special operation" in Ukraine, targeting its economy, military, and financial systems to curb war funding.
Sanctions include bans on technology exports for weapons, restrictions on Russian oil and gold imports, and blocks on financial transactions via entities like Rosneft and Lukoil.
In October 2025, President Donald Trump sanctioned the oil giants and subsidiaries amid stalled ceasefire talks, aiming to pressure Russian leader Vladimir Putin to terminate the military operation in the former Soviet republic.
Casualty estimates in the Russo-Ukrainian war exceed one million combined when including killed and wounded on both sides.
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