Exxon In Talks To Acquire Lukoil’s Giant Iraq Oilfield Stake As Sanctions Force Russian Firm's Exit: Report

• The area produces around 470,000 barrels per day, accounting for about 0.5% of the entire world’s oil supply.
• Iraq's oil ministry on Monday invited several U.S. oil companies to bid for the West Qurna 2 stake.
• The Iraqi government reportedly prefers Exxon as the bidder due to its expertise in handling large-scale projects.

Exxon Mobil (XOM) has reportedly spoken with the Iraqi oil ministry to express its interest in acquiring Russian firm Lukoil's majority stake in the giant West Qurna 2 oilfield, one of the world's largest oil projects.

According to a Reuters News report, citing Iraqi officials, Lukoil is looking to offload its international assets after the U.S. imposed sanctions on the Russian firm, as part of its ongoing efforts to put pressure on Moscow and bring Russian President Vladimir Putin to the negotiating table. Exxon will need the U.S. Treasury Department's approval before signing any deal.

How Big Is The Oilfield?

According to the report, Lukoil’s 75% stake in the West Qurna 2 oilfield is its largest foreign asset. The area produces around 470,000 barrels per day, accounting for about 0.5% of the world’s oil supply and 9% of Iraq's total output, the second-largest producer in OPEC after Saudi Arabia. A state-owned oil company holds the remaining 25% stake in the project.

Iraq's oil ministry on Monday invited several U.S. oil companies to bid for the West Qurna 2 stake. The report added that the Iraqi government prefers Exxon as the bidder, considering its expertise in handling large-scale projects. If the deal is signed, Exxon could further bolster its position as the top Western oil producer, already averaging about 4.6 million barrels per day this year.

Retail sentiment on Stocktwits about Exxon was in the ‘neutral’ territory at the time of writing, compared with ‘bearish’ a day ago.

Exxon’s Recent History In Iraq

Despite being one of the first Western oil firms to be allowed into Iraq following the toppling of Saddam Hussein’s government, Exxon's operations in the West Asian country have often been marred by major political standoffs, security risks, and contractual disputes. Exxon sold its primary investment in the country, a stake in the West Qurna-1 oil field in southern Iraq, in January 2024.

In October, Exxon signed a non-binding agreement with Iraq to help develop the Majnoon oilfield, located 60 km (37 miles) from Basra in southern Iraq.

Also See: Bitcoin’s Price Steadies At $86,000 After $1B Liquidations – Grayscale Sees New Highs In 2026

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