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By John Lee.

Iraq participated via video link in a meeting of OPEC+ countries to review global oil market conditions and the production outlook.

The group agreed to modestly increase oil production starting April 2026, adding 206,000 barrels per day, as part of a gradual unwinding of earlier voluntary output cuts, citing stable economic conditions and low oil inventories.

However, they emphasized flexibility to pause, slow, or reverse this increase depending on how market conditions evolve.

Full statement from OPEC:

Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman adjust production and reaffirm commitment to market stability

The eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman met virtually on 1 March 2026, to review global market conditions and outlook.

In view of a steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories, the eight participating countries decided to resume the unwinding of the 1.65 million barrels per day of additional voluntary adjustments announced in April 2023 and agreed on a production adjustment of 206 thousand barrels per day. This adjustment will be implemented in April 2026 as detailed in the table below. The 1.65 million barrels per day may be returned in part or in full subject to evolving market conditions and in a gradual manner. The countries will continue to closely monitor and assess market conditions, and in their continuous efforts to support market stability, they reaffirmed the importance of adopting a cautious approach and retaining full flexibility to increase, pause or reverse the phase out of the voluntary production adjustments, including reversing the previously implemented voluntary adjustments of the 2.2 million barrels per day announced in November 2023.

The eight OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation. The eight countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation, including the additional voluntary production adjustments that will be monitored by the Joint Ministerial Monitoring Committee (JMMC).

They also confirmed their intention to fully compensate for any overproduced volume since January 2024. The eight OPEC+ countries will hold monthly meetings to review market conditions, conformity, and compensation. The eight countries will meet on 5 April 2026.

(Sources: OPEC / Ministry of Oil)

By Ahmed Mousa Jiyad. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Preliminary Assessment of MoO-Chevron Agreements

On February 23, 2026, the Ministry of Oil (MoO) website published a very brief statement indicating the signing of bilateral and trilateral settlement and framework agreements with the Russian company Lukoil and the American company Chevron, concerning a group of oil fields and exploration blocks.

Due to the limited information provided by the MoO statement, and the complete lack of transparency adopted by the Ministry under the current government regarding this matter, this initial assessment was prepared based on available information and continuous monitoring of developments in the oil sector and the fields covered by these agreements. The assessment revealed significant ambiguity and a lack of clarity, raising "what if" questions and complex implementation dilemmas, as well as a high probability of changes to existing contracts and the adoption of new contracts favouring the American company.

The economic rationale behind the agreements is questionable, and the continued marginalization of national efforts in developing upstream petroleum causes deep concern. It should be emphasized that the findings of this assessment are highly subject to change should sufficient and accurate information regarding these agreements become available. For legal reasons, questions are being raised here, not accusations.

The first part of this contribution identifies the subject matter and content of the signed agreements, while the second part provides essential background information and raises important questions. The third part discusses and analyses each of the four agreements, and the fourth part offers additional and concluding remarks.

Click here to read the full article.

Mr Jiyad is an independent development consultant, scholar and Associate with the former Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq's Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: mou-jiya(at)online.no, Skype ID: Ahmed Mousa Jiyad). Read more of Mr Jiyad's biography here.

By John Lee.

Preliminary principles agreements have been signed covering the transfer and development of several oil fields in southern and central Iraq.

1. The first agreement was signed between Basra Oil Company (BOC) and US oil major Chevron for the transfer of management of the West Qurna 2 field.
2. A second agreement was signed between Dhi Qar Oil Company (DQOC), North Oil Company (NOC), and Chevron to:

• • Develop the Nasiriyah oil field;
  • Develop four exploration blocks in Dhi Qar province;
  • Develop the Balad oil field in Salahaddin province.

In parallel, Basra Oil Company and Russia's Lukoil signed a settlement agreement under which the West Qurna 2 contract will be transferred temporarily to Basra Oil Company, with all outstanding financial dues between the parties settled. The settlement will take effect following approval by the Council of Ministers.

An additional framework agreement was signed between Basra Oil Company, Lukoil and Chevron allowing for the temporary transfer of the contract to Basra Oil Company, which will subsequently assign it to Chevron following completion of negotiations and agreement on the terms of a new contract. The framework provides Chevron with exclusive negotiating rights for one year under agreed criteria.

The signing ceremony was held under the patronage of Prime Minister Mohammed Shia Al-Sudani and attended by Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul Ghani, US Special Envoy to Iraq Tom Barrack, and Chargé d'Affaires Joshua Harris.

(Source: Ministry of Oil)

By John Lee.

Iraq's Ambassador to the Russian Federation, Abdul Karim Hashem Mustafa, met with Russian Deputy Foreign Minister for Economic Cooperation and Eurasian Integration, Alexander Anatolyevich Pankin (pictured), to discuss mechanisms for facilitating trade and enhancing investment cooperation between the two countries.

According to the state-run Iraqi News Agency (INA), the meeting took place at the Russian Ministry of Foreign Affairs in Moscow and focused on strengthening bilateral relations, particularly in the economic and commercial spheres.

The two sides reviewed preparations for the 11th session of the Iraqi-Russian Joint Committee, scheduled to be held in Moscow later this year. The ambassador noted that current trade volumes remain below potential and stressed the need to increase exchange through new agreements and memoranda of understanding, as well as activation of previously signed accords.

He also emphasised the importance of finalising a bilateral road transport agreement and establishing practical mechanisms to facilitate visa issuance for Iraqi businesspeople travelling to Russia, in order to stimulate trade and investment flows.

Mustafa further called for follow-up on the outcomes of the 10th Joint Committee session, held in Baghdad in February 2025, to ensure implementation of agreed measures ahead of the upcoming round of talks.

The ambassador highlighted the positive role of Russian companies operating in Iraq, particularly in the energy sector, and renewed Iraq's invitation for Russian firms to participate in strategic projects, including the Development Road project.

For his part, Deputy Minister Pankin affirmed Russia's readiness to strengthen economic and trade cooperation with Iraq and to address obstacles that may impede progress, underscoring the importance of accelerating draft agreements for signature during the forthcoming Joint Committee meeting.

(Source: Iraqi News Agency)

By John Lee.

Iraq's Council of Ministers has approved an amicable settlement with Lukoil to transfer petroleum operations at the West Qurna 2 field to Basra Oil Company (BOC).

The settlement addresses outstanding matters relating to invoices and the employment of foreign staff, subject to certification by a reputable external auditor.

It also designates the tax due on the salaries of foreign employees as final revenue to the state treasury.

The West Qurna-2 field, operated by Lukoil under a service contract, is fully state-owned. Following US sanctions on Lukoil and the company declaring force majeure, the Iraqi Council of Ministers approved the transfer of operational management of the field to Basra Oil Company (BOC).

(Source: PMO)

By John Lee.

Russia's Lukoil has signed an agreement with US investment company Carlyle for the sale of LUKOIL International GmbH, a wholly owned subsidiary that holds the its international assets.

The agreement is non-exclusive and subject to regulatory approval, including permission from the US Department of the Treasury's Office of Foreign Assets Control (OFAC).

Lukoil said it continues negotiations with other potential buyers.

Iraq's West Qurna-2 oil field, operated by Lukoil under a service contract, is fully state-owned. Following recent US sanctions on Lukoil and the company declaring force majeure, the Iraqi Council of Ministers approved the transfer of operational management of West Qurna-2 to Basra Oil Company (BOC).

Recent press reports say that Chevron is interested in taking over operations at West Qurna 2.

Full statement from Lukoil:

LUKOIL AGREES WITH CARLYLE ON SALE OF INTERNATIONAL ASSETS

PJSC "LUKOIL" (hereinafter - the "Company") informs that it signed agreement with US investment company Carlyle on sale of LUKOIL International GmbH (100% subsidiary of PJSC "LUKOIL" which owns international assets of LUKOIL Group). The transaction does not include the assets in Kazakhstan which will remain to be owned by LUKOIL Group and continue their operations under respective license.

The agreement signed is not exclusive for the Company and is subject to some conditions precedent such as procurement of necessary regulatory approvals including permission of the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) for the transaction with Carlyle.

The Company also continues negotiations with other potential purchasers.

LUKOIL International GmbH is on sale owing to restrictive measures introduced by some countries against the Company and its subsidiaries.

(Source: Lukoil)

From Amwaj Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

How Iraq's oil sector is emerging as battleground for Russia, US

Upending dynamics in Iraq's energy sector, Baghdad has announced that it is nationalizing the West Qurna-2 oil field following the exit of the site's Russian operator. ...
The retreat severely undermines Russia's economic foothold in the country, with American companies now poised to potentially fill the vacuum.

The full article can be viewed here.

By Simon Watkins for OilPrice.com. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Is Iraq About to Make Its Biggest Geopolitical Pivot in Years?

Washington's escalation of sanctions on Russia's top oil firms has opened space for Western majors to re-enter Iraq.

Click here to read the full report.

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)

By John Lee.

State-owned Basra Oil Company (BOC) has been approved by the Council of Ministers to assume responsibility for managing petroleum operations at the West Qurna 2 oilfield, in line with the provisions of the field's service and development contract.

According to a statement from the Prime Minister's Office, the Cabinet decision also authorises the relevant authorities to obtain the required formal approvals to finance petroleum operations through the Majnoon field account. It says this will be achieved by strengthening the account via the sale of crude oil cargoes marketed by the State Oil Marketing Organization (SOMO).

In early December, Iraq's Ministry of Oil issued exclusive invitations to several major US oil companies to submit bids to take over the field, after Russia's Lukoil  was hit with US sanctions. Companies including Chevron were understood to be considering investment.

(Source: PMO)