Oil & Gas

Iraqi Prime Minister Mohammed Shia Al-Sudani has overseen a cabinet decision to appoint the state-run Basra Oil Company as the operator of petroleum activities at West Qurna-2, one of the largest oilfields globally. The move marks a significant step in reshaping the management structure of the strategic southern Iraqi asset.

According to a statement from the prime minister’s media office, the decision aligns with the terms of the technical service contract previously signed with Russia’s Lukoil. The resolution was finalized during a cabinet meeting and reflects Baghdad’s efforts to ensure continuity of operations amid changing geopolitical and commercial dynamics.

Under the new arrangement, Basra Oil Company will be responsible for covering local staff salaries, operational costs, and payments to subcontractors. These expenses will be financed through an account linked to the Majnoon oilfield, with the cabinet also approving the use of revenues from crude oil shipments sold by state marketer Somo to fund ongoing operations, although no financial figures were disclosed.

The development comes as Iraq reassesses Lukoil’s role in West Qurna-2 following sanctions imposed on the Russian company. In December, Iraqi authorities announced plans to engage US oil companies as part of discussions aimed at transferring Lukoil’s stake in the field, signaling a potential shift in international partnerships within the country’s oil sector.