Exxon Mobil has formally expressed interest in buying Lukoil’s 75% stake in the West Qurna 2 oilfield, a giant asset in southern Iraq that sits just north of Basra.
West Qurna 2 holds an estimated 13 billion barrels of recoverable reserves and currently produces 470,000‑480,000 barrels per day, roughly 9% of Iraq’s total output. Lukoil’s majority ownership has prompted a sale as U.S. sanctions imposed in October 2025 have tightened its ability to operate internationally.
The U.S. Treasury has opened a negotiation window that expires on December 13, 2025; any deal will still require final approval. The Iraqi Oil Ministry has invited several U.S. companies to discuss taking over the field and has identified Exxon as a preferred partner because of its experience in the region.
Exxon previously operated West Qurna 1 until 2024, when it exited the project. In October 2025 the company signed a non‑binding agreement with the Iraqi government to develop the Majnoon field, signaling a renewed focus on Iraq’s upstream sector.
Acquiring West Qurna 2 would give Exxon a substantial foothold in Iraq, potentially unlocking significant reserves and aligning with Iraq’s goal of raising production to 6‑7 million barrels per day by 2030.
Iraqi officials have welcomed the prospect, with a senior oil ministry spokesperson stating, “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.”
Lukoil declared force majeure on November 10, 2025, citing sanctions‑related operational disruptions, which led Iraq to halt payments to the Russian firm.
The deal would help Iraq stabilize production and market share while providing Exxon with a strategic asset that complements its recent Majnoon agreement and strengthens its Middle East portfolio.
Analysts view the potential acquisition as a strategic win for Exxon, noting that the transaction would deepen U.S. presence in Iraq and add a high‑reserves field to the company’s portfolio, while also reflecting the broader geopolitical shift caused by U.S. sanctions on Russian energy assets.
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