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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, as the group confirmed it will maintain its current production policy during early 2026.

Full statement from OPEC:

Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman reaffirm commitment to market stability on steady global economic outlook and current healthy oil market fundamentals as reflected in low inventories

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 4 January 2026, to review global market conditions and outlook.

The eight participating countries reaffirmed their decision on 2 November 2025 to pause production increments in February and March 2026 due to seasonality as detailed in the table below.

The eight participating countries reiterated that 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 continue pausing or reverse the additional voluntary production adjustments, including the previously implemented voluntary adjustments of the 2.2 million barrels per day announced in November 2023.

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 1 February 2026.

(Sources: OPEC / Ministry of Oil)

By Ahmed Tabaqchali, for the Institute of Regional and International Studies (IRIS) at the American University of Iraq, Sulaimani (AUIS). The opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Iraq's Gas Flaring Paradoxes: Economic and Technical Obstacles

Almost every year, since 2012, Iraq vies with Iran for the second or third-ranked gas flaring country in the world behind Russia. In 2024, it ranked third, for the second year running, with flare volumes of 18.2 billion cubic meters (BCM), accounting for 12% of the world's total.

These wasted resources could contribute to closing the country's growing electricity supply-demand gap, especially considering that Iraq consumed 19.7 BCM of gas in the same year, of which 7.8 BCM were imported from Iran. Such persistent high flare volumes stand in contrast to frequent official declarations that flaring is being seriously addressed and that it will end in a few years, the latest such declaration being that the elusive goal of zero flaring would be achieved by 2028.

Promisingly, this time it has substance; nevertheless, the timeframe is ambitious and a lot can still derail it.

The full report can be read here.

To browse our comprehensive library of reports on Iraq, click here.

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

Could South Korea become Iraq's leading arms supplier?

In a significant boost to Iraq's ground-based air defenses, Baghdad expects to receive South Korean M-SAM-II missile systems, also known as KM-SAM, early next year.

Baghdad's air defenses have so far been limited to short-range American and medium-range Russian systems.

This may see Seoul give other leading arms suppliers -- namely the US, Russia and France -- some serious competition.

The full article can be viewed here.

By John Lee.

Iraq's Ministry of Oil has issued exclusive invitations to several major US oil companies to submit bids for taking over the operatorship of the West Qurna-2 field.

The Ministry said it is pursuing a transparent, competitive process based on approved criteria for awarding oilfield development contracts. Direct negotiations are under way with the invited companies, which will be allowed to submit offers and compete openly.

According to the statement, transferring management of West Qurna-2 to a leading US operator would support Iraq's production stability, safeguard its market share, and ensure the continuity of state revenues. It would also strengthen Iraq-US economic relations, facilitate technology transfer, and broaden the international expertise working in Iraq's oil sector.

The Ministry added that greater participation from major US firms reflects Iraq's strategic importance in global energy markets and contributes to long-term economic and strategic sustainability.

Russia's Lukoil, the operator of the field, said on 14th November that it was in negotiations with several potential buyers for its international assets, following restrictions imposed earlier that month. The United States subsequently issued a sanctions waiver allowing continued operations related to Lukoil until 13th December.

See also:

Lukoil in talks with Iraqi PM as US issues Sanctions Waiver

US Treasury Department statement

Lukoil statement

Jiyad: Oil Ministry should Brace for Russia's Coerced Exodus

(Source: Ministry of Oil)

By John Lee.

The United States has issued a sanctions waiver allowing continued operations related to Russia's Lukoil until 13th December, following restrictions imposed earlier this month.

Lukoil said on 14th November that it is in negotiations with several potential buyers for its international assets, adding that a deal will be announced once agreements and regulatory approvals are finalised. The company said it aims to maintain uninterrupted operations and energy supplies during the transition and is in regular contact with authorities in all countries where it operates.

Today [Monday] in Baghdad, Prime Minister Mohammed Shia Al-Sudani met with Lukoil's former President, Vagit Alekperov, to discuss mechanisms to stabilise oil production despite the impact of US Treasury measures on the company's investment contracts. Lukoil produces around 480,000 barrels per day (bpd) at the West Qurna-2 field.

Al-Sudani reaffirmed Iraq's commitment to stable global oil markets and to maintaining steady national output levels.

Industry sources previously told Reuters that Lukoil had declared force majeure at West Qurna-2, while last week Switzerland's Gunvor Group withdrew its proposal to acquire Lukoil's international assets following US opposition.

See also:

US Treasury Department statement

Lukoil statement

Jiyad: Oil Ministry should Brace for Russia's Coerced Exodus

(Sources: PMO / Lukoil / US Treasury / Reuters)

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

MoO Should Brace for ROCs' Coerced Exodus

The tripartite (UK, EU and US) sanctions against Russian oil companies (ROCs), Lukoil and Rosneft, present direct, immediate and impacting threats to the development of the upstream petroleum sector in Iraq.

US Treasury Department's Office of Foreign Assets Control (OFAC) compels Lukoil to sell its international assets by November 21, and, later, rejects the Gunvor deal. The Ministry of Oil (MoO) and the Iraqi government should act swiftly to address this dramatic imminent eventuality, to minimise the detrimental and long-lasting impacts of such sanctions.

ROCs are integrated international oil giants; their involvement stretched along the global petroleum industry value chain, i.e., from exploration to service petrol stations.  Hence, each has a rather wide, large, diversified network of subsidiaries and cooperating entities around the world (some 85 entities).

Analytically, these specific sanctions on the two ROCs were premised on and related to geopolitical and geostrategic aspects of the sanctions endgame to inflicting effective impact on Russia to the extent of becoming a "deterrence" for continuing the war in Ukraine. Views differ widely on such eventuality; an issue that falls outside the focus of this article.

That said, these specific sanctions, have a rather high likelihood of negative, effective, direct, and immediate impacts on Iraq. The imposed sanctions resemble the highest level of global geopolitical rivalries and geostrategic positioning, with significant risk and strategic implication for Iraq.

Though the tripartite sanctions focus, for the time being, on Lukoil and Rosneft, other Russia companies such as Gazprom could be next in the sanctions' pipeline.

This article focuses on the impacts on Iraq due to sanctioning all three ROCs, as the federal MoO and KRG will be impacted, though at different levels and scale, and which of the three ROCs.

After briefly assess the latest status of each project, I proposed a set of options which I think MoO should consider to averting or minimising sanction' risk.

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.

Swiss-based Gunvor Group has withdrawn its proposal to acquire Lukoil's international assets following opposition from the US Treasury Department.

The Treasury stated that Gunvor would not receive a licence to operate as long as Russia continues its military actions in Ukraine, describing the company as "the Kremlin's puppet."

Gunvor rejected the claims, saying the Treasury's statement was "fundamentally misinformed and false."

The company said it has distanced itself from Russia for more than a decade, ceased trading in line with sanctions, sold off Russian assets, and publicly condemned the war in Ukraine.

Russia's Lukoil had announced plans to sell its international assets to Gunvor before the deal was abandoned.

Lukoil has significant interests in Iraq's West Qurna 2 (pictured) and Block 10.

US Treasury Department statement on X:

"President Trump has been clear that the war must end immediately. As long as Putin continues the senseless killings, the Kremlin's puppet, Gunvor, will never get a license to operate and profit."

Gunvor Group statement on X:

"The Treasury Department statement about Gunvor is fundamentally misinformed and false. Gunvor is and has always been open and transparent about its ownership and business, and has for more than a decade actively distanced itself from Russia, stopped trading in line with sanctions, sold off Russian assets, and publicly condemned the war in Ukraine. We welcome the opportunity to ensure this clear misunderstanding is corrected. In the meantime, Gunvor withdraws its proposal for Lukoil's international assets."

See also:

Ahmed Mousa Jiyad: Oil Ministry should Brace for Russia's Coerced Exodus

(Sources: US Treasury Dept / Gunvor Group)

By John Lee.

Russia's LUKOIL has announced that it will sell its international assets to Swiss-based Gunvor Group.

In an announcement on Thursday, the company said:

"The conclusion of the binding agreement for the transaction is subject to conditions precedent including obtaining OFAC permission by the Purchaser as well as any other applicable licenses, permits and other authorizations in other applicable jurisdictions.

"If necessary, the parties plan to apply for extension of the existing OFAC license and any additional licenses to ensure uninterrupted operations of international assets and their banking servicing for the period until the completion of the transaction.

"The sale of LUKOIL International GmbH is due to restrictive measures of some states introduced against the Company and its subsidiaries."

The sale follows last week's announcement from the US Treasury Department that it will place sanctions on Lukoil and Rosneft.

Lukoil has significant interests in Iraq's West Qurna 2 (pictured) and Block 10.

Registered in Cyprus, Guvnor is an energy commodities trading company with its main trading office in Geneva, Switzerland.

[Correction: Article edited on 10th November 2025 to correct spelling of Gunvor Group].

(Source: Lukoil)

By John Lee.

Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul Ghani Al-Sawad met today (Wednesday) with a joint delegation from Russia's Lukoil and Japan's INPEX.

The discussions focused on cooperation across Iraq's oil, gas, and energy sectors.

The delegation included Ivan Romanovsky, Lukoil Vice President for the Middle East; Elnur Karbanov, General Manager of Lukoil Overseas (operator of the Eridu field in Block 10); Ghassan Saidnafi, Deputy Director of Lukoil Iraq Branch; Munihiro Hosono, Senior Vice President of INPEX; and Shinya Toshi, INPEX Vice President for the Middle East.

(Source: Ministry of Oil)

By John Lee.

OPEC has said it has received updated compensation plans from several countries, including Iraq, to compensate for excess oil production.

Full statement from OPEC:

OPEC Secretariat receives updated compensation plans from Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, and Oman

As agreed during the virtual meeting held by the eight countries with additional voluntary adjustments, including Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman, on 7 September 2025, the OPEC Secretariat received updated compensation plans as per the table above.

(Source: OPEC)