Iraq has called on American companies to replace Lukoil

After the US sanctions against Lukoil came into force, Baghdad called on American companies to replace the Russian one at one of the world's largest projects.

The Iraqi Oil Ministry announced that it had sent invitations to American companies to participate in negotiations and participate in the tender for the management of the West Qurna—2 project, which was controlled by Lukoil.

"The transfer of management of the West Qurna—2 field to one of the American oil companies should serve the common interests and strengthen the stability of world markets, ensure the continuation of Iraqi oil production operations and its market quotas, as well as sustainable state revenues," the statement posted on the ministry's Facebook page said*.

They believe that the contribution of American companies to the development of the Iraqi oil sector confirms the strategic importance of Iraq and the cooperation corresponds to the economic and strategic interests of Iraq for the United States.

The ministry did not specify what Lukoil, which invested in the oil project, can count on. The Russian company had 75% in it and bore all the costs. Production at West Qurna— 2 is 480 thousand barrels per day. The share of the Iraqi project in Lukoil's total production was approximately 20%.

On November 21, US sanctions against Lukoil came into force. The company stated that they plan to sell international assets and at the beginning tried to make a deal with a Gunvor trader. However, the US Treasury refused to approve it. Next, Lukoil announced that it was negotiating with several potential buyers and wanted to sell the entire assets. They also include refineries, gas station networks in Europe, shares in projects in Kazakhstan, Azerbaijan and a number of other countries. FG Finam estimated Lukoil's international assets at $12 billion.

As EADaily reported, the United States Treasury Department gave the Russian company an exemption from sanctions until December 13 so that it could sell international assets. The Bulgarian Lukoil refinery, where Sofia introduced external management, and Kazakh assets, including CPC, also received exceptions.

Reuters reported that one of the world's largest investment funds, Carlyle, is interested in Lukoil's international assets. American oil giants Chevron and ExxonMobil also expressed their desire to acquire some assets.

Experts noted that in Washington did not expect before that the speed with which Lukoil would find a buyer for assets that are also of interest to American oil giants.

Thus, all three megaprojects of Kazakhstan are controlled mainly by American and European companies.

For example, 75% of the Tengiz field development project belongs to American Chevron and ExxonMobil. Another 20% belongs to the Kazakh state-owned company KazMunayGas. According to the financial statements, in 2023 the total revenue of the project amounted to $ 19.45 billion. Of these, Kazakhstan got 41.6% ($ 8.09 billion).

"The secondary goal (of sanctions) is to force, perhaps, Lukoil to sell assets to American companies. There are those among them who are interested in this. For example, Chevron, it would be interested in Lukoil's assets in In Kazakhstan and in Uzbekistan, at least. There is ExxonMobil, which has long been interested in assets in Iraq, and it would be interesting for him, for example, to buy West Qurna—2, one of the largest oil projects in the world," said Igor Yushkov, a leading analyst at FNEB, EADaily.

*Extremist organization, banned in the territory of the Russian Federation