ExxonMobil has initiated discussions with the Iraqi Oil Ministry for the potential acquisition of Lukoil’s majority stake in the West Qurna 2 oilfield, reported Reuters.
This news comes as the Russian oil company seeks to divest its global assets following US sanctions.
Lukoil currently holds a 75% operational stake in West Qurna 2, which is among the world’s largest oilfields, producing approximately 470,000 barrels per day.
The West Qurna 2 oilfield is said to represent around 0.5% of global oil supply and 9% of total output in Iraq, the second-largest producer in the Organization of the Petroleum Exporting Countries after Saudi Arabia.
The market value of West Qurna 2 is estimated at around $1.6bn, based on its production levels and reserves exceeding eight billion barrels.
Last month, the US Treasury gave clearance to potential buyers to negotiate with Lukoil until 13 December, but they will require further approval for specific transactions.
Exxon had reportedly joined Chevron in seeking opportunities to acquire parts of Lukoil’s portfolio.
Last month, Lukoil declared force majeure at West Qurna 2 after Iraq suspended both cash and crude payments to the company.
Exxon was previously the operator of the nearby West Qurna 1 project before exiting in 2024.
In October, Exxon signed a non-binding agreement with Iraq to help develop the Majnoon oilfield and to expand oil exports, marking the company’s return to the country after leaving it almost two years ago.
This move follows several deals between Iraq and other oil companies as the country aims to boost oil and gas production by offering more attractive terms, the report said.
A senior Iraqi oil official who oversees foreign companies’ operations in the south, told Reuters: “Exxon is our preferred option to take over from Lukoil. The company has the capacity and experience needed to manage a field as large and complex as West Qurna 2.”
Recently, Abu Dhabi’s International Holding Company reportedly expressed interest in acquiring the foreign assets of Lukoil.
