(Bloomberg) – Iraq plans to invite a select group of major U.S. oil companies for direct negotiations over the acquisition of Lukoil PJSC’s stake in the giant West Qurna-2 oil field, as Baghdad accelerates efforts to reshape ownership of one of its key energy assets.
The Oil Ministry said in a statement that it will approach “a limited number” of leading American producers as part of a process to transfer the Russian company’s share in the southern field.
The US announced sanctions on Lukoil in October, a move that has pitted the company into selling its international assets. A key detail in the process is that the Trump administration would prefer that Lukoil’s global assets are taken over by a U.S. entity, a fact that may limit the pool of potential buyers, people with knowledge of the matter said last month.
“Transferring the management of the West Qurna-2 field to one of the U.S. oil companies will serve mutual interests, strengthen the stability of global markets and ensure Iraq’s oil production and market share,” the ministry said.
The ministry didn’t disclose which firms would be invited or the expected timeline for a final agreement. However, ExxonMobil and Chevron were among U.S. oil companies interested in at least some of Lukoil’s international assets, Bloomberg previously reported.
Spokespeople for both U.S. oil giants declined to comment after the ministry’s statement.
See also: Exxon, Chevron and ADNOC explore bids for Lukoil’s international assets
Baghdad has already increased its oversight of the project.
In November, the government assumed responsibility for marketing Lukoil’s crude output from the field, ensuring flows continued despite the sanctions. Lukoil has operated West Qurna-2 since the early 2010s, helping ramp up production at a field that holds close to 13 Bbbl of recoverable reserves.
Iraq, OPEC’s second-largest producer, has been seeking to rebalance foreign participation in major upstream assets to attract Western investment and bolster technical capabilities.
Securing a U.S. operator would dovetail with Washington’s strategic preferences while signaling Baghdad’s intent to deepen energy ties with American firms.
Further details on the selection and bidding process are expected in the coming weeks.
