Iraq’s cabinet has endorsed the takeover of petroleum operations at the West Qurna 2 oilfield, one of the largest globally, following terms set out in the service contract with Russia’s Lukoil, as reported by Reuters.

The government announced Wednesday that it will secure funding for operations through the Majnoon oilfield account, which is replenished by revenues from crude oil exports marketed by state oil seller SOMO.

State-owned Basra Oil Company (BOC) will assume responsibility for payroll, operating costs, and subcontractor fees using the Majnoon-linked account, according to an Iraqi oil manager at the field.

Output at West Qurna 2 is currently holding steady at approximately 465,000 to 480,000 barrels per day (bbl/d). A Ministry of Oil source stated the decision to assume control was taken to avert production disruptions linked to international sanctions on Lukoil.

The field represents roughly 9% of total crude oil production in Iraq, the second-largest producer in the Organization of the Petroleum Exporting Countries (OPEC).

The move follows Lukoil’s declaration of force majeure on November 4, 2025, after the United States imposed sanctions on major Russian oil producers. Lukoil is currently exploring an exit from international assets under a wind-down license issued by the US Treasury’s Office of Foreign Assets Control (OFAC).

Industry sources noted that ExxonMobil has previously signaled interest in acquiring the controlling stake in the field.