By John Lee.
The Iraqi Embassy in Moscow has issued a clarification regarding reports that Iraq plans to nationalise the West Qurna-2 oil field, operated by Russia's Lukoil.
The embassy confirmed that the field is fully state-owned. Under the 2008 licensing round agreement, Lukoil managed and developed the field and produced oil under a service contract in exchange for fees.
Following recent US sanctions on Lukoil and the company declaring force majeure, the Iraqi Council of Ministers on 7 January 2026 approved the transfer of operational management of West Qurna-2 to Basra Oil Company (BOC). This move is intended to maintain production of around 480,000 barrels per day in line with the service contract and development terms.
Key measures include:
- Obtaining the necessary approvals to finance operations via the Majnoon field account
- Supporting the account through the sale of oil shipments by the State Oil Marketing Organization (SOMO)
- Maintaining Lukoil's role for one year, during which it may transfer its rights under the service contract to any company meeting Ministry of Oil standards or resume operations as operator if sanctions are lifted
(Source: Ministry of Foreign Affairs)
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