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Iraq Nationalizes Key Oil Field Amid Lukoil Crisis

1/9/2026

31 5 Full Breakdown

Summary

Story summary

Iraq nationalizes the West Qurna-2 oil field, which is 75% owned by Lukoil and contributes about 0.5% of global oil supplies and 9% of Iraq's production.
Basra Oil will manage the field for 12 months to stabilize production amid US sanctions.
Lukoil declared force majeure in November after the Iraqi government halted payments.
Lukoil must divest its foreign assets by January 17, with potential buyers including Chevron and Exxon Mobil.

History

Historical Context

Iraq nationalized its oil industry in 1972, taking control from foreign companies like British Petroleum and Mobil Oil, which significantly boosted state revenue. Today, the nationalization of the West Qurna-2 oil field, previously owned by Lukoil, highlights ongoing tensions over foreign investment and resource control, potentially reshaping Iraq's economy and impacting global oil markets amid US sanctions.

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Story summary

Iraq nationalizes the West Qurna-2 oil field, which is 75% owned by Lukoil and contributes about 0.5% of global oil supplies and 9% of Iraq's production.
Basra Oil will manage the field for 12 months to stabilize production amid US sanctions.
Lukoil declared force majeure in November after the Iraqi government halted payments.
Lukoil must divest its foreign assets by January 17, with potential buyers including Chevron and Exxon Mobil.

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