According to Reuters, Iraq’s cabinet has approved the takeover of petroleum operations at the West Qurna 2 oilfield, one of the biggest in the world, in accordance with the conditions outlined in the service agreement with Russia’s Lukoil. The Majnoon oilfield account, which is refilled by profits from crude oil exports sold by state oil marketer SOMO, will be used by the government to secure finance for operations, the administration declared on Wednesday. According to an Iraqi oil manager on the ground, the Majnoon-linked account will be used by state-owned Basra Oil Company (BOC) to handle salaries, operations expenses, and subcontractor payments. At the moment, West Qurna 2’s output is stable at between 465,000 and 480,000 barrels per day (bbl/d). According to a Ministry of Oil source, the decision to take over was made in order to prevent production disruptions related to Lukoil’s international sanctions. Iraq is the second largest producer in the Organization of the Petroleum Exporting Countries (OPEC), and the field accounts for about 9% of the country’s total crude oil production.
The action comes after Lukoil declared a force majeure on November 4, 2025, following the imposition of sanctions by the US on significant Russian oil producers. Under a wind-down license granted by the US Treasury’s Office of Foreign Assets Contro (OFAC), Lukoil is presently investigating a withdrawal from foreign assets.ExxonMobil has previously expressed interest in purchasing the dominant position in the industry, according to industry sources.