By: AGBI

Iraq is to hold talks with US oil companies about selling Lukoil’s stake in the West Qurna-2 oil field due to the Russian giant being hit by sanctions.

The ministry will approach American oil producers as part of a process to transfer the Russian company’s share in the southern field, the state-run Iraq News Agency reported.

The winning company will be selected through a transparent competition and in line with the criteria for awarding oil field development contracts, the ministry said.

“The transfer of management of the West Qurna-2 field to a US oil company will serve mutual interests, strengthen the stability of global markets, and ensure Iraq’s oil production and market share,” the statement said, without disclosing a timeline for the process.

The US imposed sanctions on Russian oil companies Lukoil and Rosneft in October, a move aiming to put pressure on Moscow to end the war in Ukraine.

Located 65km northwest of the port of Basra, West Qurna-2 is one of the world’s largest oilfields. The field’s initial recoverable reserves come to around 14 billion barrels. More than 90 percent of the reserves are concentrated in Mishrif and Yamama accumulations, according to Lukoil’s website.

Lukoil holds a 75 percent interest in West Qurna-2, with the remaining 25 percent held by the state-owned North Oil Company.

In November Reuters reported that Abu Dhabi conglomerate International Holding Company told the US Treasury it was interested in buying Lukoil’s foreign assets.