West Qurna 2 Moves Under Basra Oil Management by Iraqi Decision

The Iraqi government has approved transferring the management of oil extraction operations at West Qurna 2 to the state-owned Basra Oil Company, aiming to secure production stability and ensure continued export flows to global markets.

Officials stated that funding for operations at West Qurna 2 will be covered through national oil accounts and revenues from crude shipments marketed by Iraq’s state oil exporter.

This move follows a force majeure declaration by Russia’s Lukoil after international sanctions affected its ability to continue managing the field.

The Ministry of Oil is also seeking to attract US oil companies to compete for future development contracts as part of efforts to safeguard supply levels and prevent disruptions.

West Qurna 2 produces about 480,000 barrels per day, making it one of the world’s largest oil fields and accounting for roughly 9% of Iraq’s total oil output.

The decision aligns with OPEC plans to gradually increase production quotas, strengthening Iraq’s position as the organization’s second-largest oil producer.