BAGHDAD – Iraq’s oil ministry announced on Monday that it had invited US companies to bid on an oil field that had been operated by the now American-sanctioned Russian company Lukoil for years. 

The oil ministry said in a statement that it had taken “all necessary measures to directly and exclusively invite several major American oil companies… to submit bids” to take over the management of West Qurna 2 in southern Iraq, which, according to Lukoil, is one of the world’s largest oil fields. 

An oil ministry official told AFP, “The winner takes over as operator instead of Lukoil”. The ministry added that “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”. 

Lukoil was awarded the contract to develop the field in 2009, and five years later, it started production, according to the Russian company’s website. 

US president Donald Trump announced in October sanctions against Russian oil majors Lukoil and Rosneft, which took effect on 21 November. 

Those moves, the most powerful by Trump against Russia over the Ukraine war, have already seen major buyers of Russian oil scramble to find alternative suppliers. 

In recent weeks, reports emerged in Iraq about Lukoil’s ability to continue running the West Qurna 2 field. Several oil experts told AFP that US oil giant ExxonMobil might replace Lukoil, but the company declined to comment. 

In October, ExxonMobil returned to Iraq after a two-year absence, reaching an initial agreement that could pave the way for developing the Majnoon field in the southern province of Basra. 

Authorities in oil-rich Iraq, which recently regained a semblance of stability, hope to attract investment, notably from US companies, across various sectors of the economy. 

Iraq is a founding member of the OPEC cartel, and crude oil sales make up 90% of the country’s budget revenues. It currently exports 3.4 million barrels per day. 

– Nampa/AFP