Exxon Mobil in talks with Iraq to buy Lukoil stake in West Qurna 2 oilfield

Exxon Mobil has approached Iraq’s Oil Ministry to express its interest in purchasing the 75 percent operating stake held by Lukoil in the giant West Qurna 2 oilfield, according to five Iraqi officials familiar with the matter.

Lukoil’s interest in selling stems from sanctions imposed by the U.S. on the Russian firm, which have disrupted its ability to operate internationally.

Under those sanctions, Lukoil declared force majeure at West Qurna 2 after Baghdad halted cash and crude payments.

West Qurna 2 currently produces roughly 470,000 barrels per day, accounting for about 9 percent of Iraq’s total oil output and about 0.5 percent of global supply.

Estimates of the field’s recoverable reserves run into the billions of barrels, underscoring its strategic importance.

This would mark a substantial return by Exxon Mobil to major Iraqi crude operations.

The company had previously operated the neighboring West Qurna 1 project before exiting in 2024.

The U.S. Treasury Department has authorized potential buyers to engage in discussions with Lukoil until December 13, but any final deal would require formal approval.