US sanctions and asset sales: why Lukoil is pulling out of the project
23 February 21:12
The American company Chevron has signed an agreement to explore the possibility of acquiring a stake in the Iraqi oil project West Qurna 2, which is currently controlled by Russia’s Lukoil. This was reported by Bloomberg, according to "Komersant Ukrainian".
West Qurna 2 is Iraq’s second-largest oil field. Its production is about 480,000 barrels per day. Currently, 75% of the project’s shares belong to Lukoil.
What the deal will look like
According to preliminary agreements between the Iraqi state-owned Basra Oil Company, Chevron, and Lukoil, the project will temporarily come under the control of Basra Oil Company. After the completion of the purchase negotiations, the company may be transferred to Chevron.
Chevron has been granted exclusive negotiating rights for one year, as well as access to confidential operational data on the field.
This format gives the American side time to evaluate the asset, its financial performance, and legal risks.
Sanctions context
In October 2025, the US imposed sanctions on Lukoil and Rosneft. After that, Russian energy giants began to review the structure of their international assets.
West Qurna 2 had previously been in the spotlight due to reports of a possible temporary nationalization of the field by Iraq for 12 months.
In early January 2026, Chevron and Quantum Energy submitted a bid to acquire Lukoil’s international assets for $22 billion.
West Qurna 2 is a strategic source of revenue for Iraq
For Chevron, it is an opportunity to strengthen its position in the Middle East and expand its production portfolio.
For Russia, it is another signal of restricted access to international projects due to sanctions.
If the deal goes through, it could be one of the biggest examples of the redistribution of Russian energy assets amid geopolitical isolation.
So far, it is only an agreement to explore the purchase. Chevron will have exclusive negotiating rights for one year. The final decision will depend on the results of financial and legal due diligence, as well as the position of the Iraqi side.
