- Category
- Latest news
Iraq Takes Over Lukoil-Run Oilfield to Avoid Disruption from US Sanctions
- Authors
![Photo of Roman Kohanets]( "Photo of Roman Kohanets")
-111f0e5095e02c02446ffed57bfb0ab1.jpeg "Photo of Roman Kohanets")
Iraq’s cabinet approved plans to nationalize petroleum operations at the West Qurna 2 oilfield and hand management to the state-run Basra Oil Company for 12 months, as Baghdad seeks to avoid disruptions linked to US sanctions on Russian stakeholder Lukoil, Reuters reported on January 8.
Basra Oil Company officials told Reuters the company will run the giant field for a year and seek buyers for Lukoil’s stake.
As for now, Lukoil’s 75% operational stake is its largest foreign asset, and the company faces a January 17 deadline tied to US Treasury authorizations for its overseas assets.
Every article pushes back against disinformation. Your support keeps our team in the field.
An Iraqi oil manager at the field said Basra Oil Company would cover local staff salaries, operating expenses and subcontractor payments, using an account linked to the Majnoon oilfield to help facilitate the process.
“We aim to keep production running smoothly as Iraq navigates uncertainty over US sanctions and will look for potential buyers for Lukoil’s stake during the 12-month period,” Basra Oil official told Reuters.
West Qurna 2 output has remained steady at about 465,000 to 480,000 barrels per day, the oil manager stated, making the field about 0.5% of global supply and roughly 9% of Iraq’s production.
Meanwhile, it was reported that the US Department of the Treasury extended a special license exempting Lukoil’s foreign gas station network from sanctions until early 2026, even as broader sanctions on the company’s core operations remain in force.
-457ad7ae19a951ebdca94e9b6bf6309d.png)
