Iraq has invited major US oil companies to bid on the country's West Qurna 2 field, the Ministry of Oil said on Monday. The oilfield has been operated by Russian company Lukoil, which is under heavy US sanctions.
Lukoil holds a 75 per cent stake in the West Qurna 2 oilfield, with an estimated 14 billion barrels of reserves. The Russian oil company was awarded the development contract for the Iraq oilfield in 2009, but declared a force majeure last month in response to sanctions placed on it by Washington.
US President Donald Trump's administration has accused Lukoil and fellow Russian oil company Rosneft of supporting Moscow's war in Ukraine. Lukoil, which was given licences to continue operating its global business until December 13, said last week it had also dissolved the supervisory board for its international business.
In a statement, Iraq's Oil Ministry said the “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".
The ministry also said it would enhance economic relations between Iraq and the US.
“The contribution of more American companies in the development of the Iraqi oil sector confirms the strategic importance of Iraq in this sector,” it said.
Iraq, a founding member of Opec, relies heavily on crude oil revenue, which accounts for 90 per cent of the country's budget. Iraq exports about 3.4 million barrels of oil a day.
US company ExxonMobil returned to Iraq in October after a two-year absence to develop the Majnoon oilfield. The announcement came amid Iraq's interest in working with US-based and other major oil companies to work on key fields in the country.
Lukoil holds additional stakes in the UAE, Egypt and elsewhere, and three refineries in Europe. The UAE's International Holding Company has said it is exploring the possibility of buying Lukoil's foreign assets.
