•US and Iraq flags
Iraq’s oil ministry announced today that it had invited US companies to bid on an oil field which had been operated by the now American-sanctioned Russian company Lukoil for years.
The oil ministry said in a statement it had taken “all necessary measures to directly and exclusively invite several major American oil companies… to submit bids” to take over the management of the West Qurna 2 in southern Iraq, which is one of the world’s largest oil fields according to Lukoil.
An oil ministry official told our correspondent “the winner takes over as operator instead of Lukoil”, reports AFP.
The ministry added that “transferring management of the West Qurna 2 field to an American oil company would benefit mutual interests, strengthen global market stability, and maintain Iraq’s oil production”.
Lukoil was awarded the contract to develop the field in 2009, and five years later it started production, according to the Russian company’s website.
US President Donald Trump announced in October sanctions against Russian oil majors Lukoil and Rosneft, which came into force on November 21.
Those moves — the most powerful by Trump against Russia over the Ukraine war — have already seen major buyers of Russian oil scramble to find alternative suppliers.
In recent weeks, reports emerged in Iraq about Lukoil’s ability to continue running the West Qurna 2 field.
Several oil experts told our correspondent that US oil giant ExxonMobil might be the one to replace Lukoil, but the company declined request for comment.
In October, ExxonMobil returned to Iraq after a two-year absence, reaching an initial agreement that could pave the way for developing the Majnoon field in the southern province of Basra.
Authorities in oil-rich Iraq, which recently regained a semblance of stability, hope to attract investment, notably from US companies, across various sectors of the economy.
Iraq is a founding member of the OPEC cartel, and crude oil sales make up 90 percent of the country’s budget revenues. It currently exports 3.4 million barrels per day.
