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Exxon Signals Interest as Iraq Seeks U.S. Operator for West Qurna 2

Sanctions on Lukoil disrupted operations at the field prompting U.S.-cleared asset talks.

Overview

  • Iraq's Oil Ministry invited several U.S. companies to negotiate taking over operation of the West Qurna 2 oilfield.
  • Five Iraqi officials said Exxon Mobil approached the ministry to explore buying Lukoil's 75% stake in the project.
  • A senior Iraqi oil official said Exxon is the preferred candidate to replace Lukoil at the giant Basra field.
  • The U.S. Treasury has allowed potential buyers to engage with Lukoil through December 13, with any transaction requiring specific approval.
  • Lukoil declared force majeure after Iraq halted cash and crude payments, and the field produces roughly 470,000 barrels per day—about 9% of Iraq's output and 0.5% of global supply.