The Council of Ministers approved the state-run North Oil Company to take over the management of oil operations at the West Qurna 2 field, in accordance with the terms of the service contract signed with Russia’s Lukoil, according to an official statement.
According to the statement, the Council authorized the company to obtain the necessary approvals to finance operations through the Majnoon oil field account, to be bolstered by the proceeds from crude shipments sold by the state oil marketing company SOMO.
Lukoil had declared force majeure in November 2025 at the West Qurna 2 field, after it was sanctioned along with Rosneft as part of US President Donald Trump’s efforts to end the war in Ukraine.
Lukoil holds a 75% operating stake in the West Qurna 2 oil field, its largest foreign asset. The field is among the world’s largest oil fields with an output of about 470,000 barrels per day.
The field contributes about 0.5% of global oil supplies and 9% of Iraq’s total production. Iraq is the second-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) after Saudi Arabia.
Iraq
Iraq, historically known as Mesopotamia, is often called the “Cradle of Civilization” for its ancient Sumerian, Babylonian, and Assyrian empires, which pioneered writing, law, and urban development. Modern Iraq, established in the 20th century, is home to significant cultural and religious sites, including the ancient city of Babylon and the holy cities of Najaf and Karbala for Shia Muslims. The country has faced significant challenges in recent decades due to conflict, impacting its rich archaeological heritage and societal structures.
West Qurna 2 field
The West Qurna 2 oil field is a major petroleum reserve in southern Iraq, located near Basra. It is one of the world’s largest oil fields and was discovered in 1973, but its development was long delayed by wars and sanctions. Large-scale production began in 2014 following a development contract awarded to a consortium led by Russia’s Lukoil.
Russia
Russia is the world’s largest country by area, spanning Eastern Europe and Northern Asia. Its history is marked by the rise and fall of the Tsarist Empire, the establishment of the Soviet Union in the 20th century, and its subsequent dissolution in 1991, leading to the modern Russian Federation. The nation is renowned for its vast landscapes, rich literary and artistic traditions, and globally influential cultural figures.
Lukoil
Lukoil is a major Russian multinational energy corporation headquartered in Moscow, specializing in the exploration, production, and sale of petroleum, natural gas, and petrochemicals. It was founded in 1991 following the dissolution of the Soviet Union, emerging from the state-owned oil and gas assets of the former Ministry of the Oil and Gas Industry.
Majnoon oil field
The Majnoon oil field is a major oil field located in southern Iraq near Basra, discovered in 1975. Its name, meaning “crazy” in Arabic, refers to the field’s vast and complex reservoir, which has historically been a site of significant conflict, including during the Iran-Iraq War in the 1980s.
SOMO
SOMO is a contemporary art museum located in Amsterdam, Netherlands, which opened in 2016. It focuses on digital culture and new media art, providing a platform for interactive and technology-driven exhibitions. The museum’s history is rooted in the rapid evolution of digital art in the 21st century, aiming to make this innovative field accessible to a broad public.
Rosneft
Rosneft is a major Russian state-controlled oil and gas company, founded in 1993 from assets previously managed by the Soviet Ministry of Oil and Gas. It grew significantly through acquisitions, most notably the purchase of the assets of the former Yukos company in the 2000s, to become one of the world’s largest publicly traded petroleum companies.
US
The United States is a federal republic founded in 1776 after declaring independence from Great Britain. Its history is marked by westward expansion, a civil war over slavery, and its emergence as a global superpower in the 20th century.
Ukraine
Ukraine is a country in Eastern Europe with a rich history dating back to the medieval state of Kyivan Rus, which is considered a foundational predecessor for both Ukraine and Russia. It gained independence from the Soviet Union in 1991 and is known for its distinct cultural traditions, including Cossack heritage, Orthodox Christian sites, and its status as a major global agricultural producer.
Organization of the Petroleum Exporting Countries
The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization founded in 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Its primary purpose is to coordinate and unify the petroleum policies of its member countries to ensure stable oil markets and secure a steady income for producers.
OPEC
OPEC, or the Organization of the Petroleum Exporting Countries, is an intergovernmental organization founded in 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Its primary purpose is to coordinate and unify the petroleum policies of its member countries to secure fair and stable prices for oil producers. Historically, OPEC has played a significant role in the global oil market, most notably through the 1973 oil embargo, which caused a major worldwide energy crisis.
Saudi Arabia
Saudi Arabia is a modern nation-state founded in 1932 by King Abdulaziz Al Saud, unifying the regions of Najd and Hejaz. It is the birthplace of Islam, home to the religion’s two holiest cities, Mecca and Medina, which have been central to Islamic history and pilgrimage for over fourteen centuries.
