Exxon Mobil has approached Iraq’s Oil Ministry to express interest in acquiring Russian firm Lukoil’s majority stake in the West Qurna 2 oilfield, Reuters reported, citing five Iraqi officials with direct knowledge of the matter.

Lukoil is seeking to sell its international assets following US sanctions imposed on the company, and Exxon’s potential acquisition would represent a significant expansion of the American oil major’s presence in Iraq. The move comes as Moscow looks to divest key energy holdings.

The US Treasury has allowed potential buyers to engage with Lukoil until December 13, though specific deals will require approval. Reuters previously reported that Exxon had joined Chevron in exploring options to acquire parts of Lukoil’s portfolio.

Exxon preferred option

A senior Iraqi oil official overseeing foreign company operations in southern Iraq said, “Exxon is our preferred option to take over from Lukoil. The company has the capacity and experience needed to manage a field as large and complex as West Qurna 2.” A senior Oil Ministry official echoed this sentiment.

Lukoil’s largest overseas holding is a 75% operational stake in Iraq’s West Qurna 2 oilfield, which ranks among the world’s biggest oilfields and produces roughly 470,000 barrels per day, representing about 0.5% of global oil supply and roughly 9% of total production in Iraq, which is OPEC’s second-largest producer after Saudi Arabia

On Monday, Iraq’s Oil Ministry confirmed that it had invited several US oil companies to begin negotiations regarding the West Qurna 2 stake.

Lukoil declares force majeure following sanctions

On November 10, Lukoil declared force majeure at Iraq’s vast West Qurna-2 oilfield after Western sanctions on the Russian oil giant created complications for its operations, according to Reuters, which cited four sources familiar with the situation.

Iraq has halted all cash and crude payments to Lukoil, according to three sources, a decision that disrupted the company’s revenue streams and created operational difficulties at the West Qurna-2 oilfield, which ultimately led Lukoil to declare force majeure.

Force majeure is a legal concept that allows a party to suspend or be excused from fulfilling contractual obligations when extraordinary events beyond their control, such as natural disasters, wars, pandemics, sanctions, or government actions, make performance impossible or impractical.

In October 2025, the US and the UK imposed new sanctions on Lukoil, citing its continued support of Russia’s oil industry amid the war in Ukraine. The measures include barring access to the US banking system, applying secondary sanctions, and placing restrictions on Lukoil’s international subsidiaries.

As a result, Lukoil’s ability to conduct transactions in US dollars has been severely restricted. Planned asset sales abroad now face greater regulatory scrutiny, particularly from the US Treasury's Office of Foreign Assets Control, while European allies are being pushed to align with the enforcement framework.