US allows oil firms extra time to acquire Russia-based Lukoil’s assets

Baghdad (IraqiNews.com) – The US Treasury Department has extended a license until June 27, enabling firms to continue negotiations with Russia-based Lukoil, the operator of Iraq’s giant West Qurna-2 oil field, over the prospective purchase of its worldwide assets.

According to Reuters, this is the sixth time that Washington has extended the license since placing sanctions on Russia’s two largest oil companies, Lukoil and Rosneft, in October.

In February, the Iraqi cabinet reached an agreement with Russia-based Lukoil to hand over operations at the West Qurna-2 oil field to the Basra Oil Company (BOC), a subsidiary of the Oil Ministry.

Reports mentioned that the deal was reached under a contract with a consortium of Bonatti and Basra Crescent enterprises to mitigate the consequences of Lukoil’s announced crisis.

Lukoil announced a crisis at Iraq’s vast West Qurna-2 oil field in early November, citing US sanctions that hampered operations.

In late October 2025, the United States blacklisted Russia’s Lukoil and Rosneft in an attempt to put pressure on Moscow to put an end to the conflict in Ukraine.

Washington first granted Lukoil a month to sell its assets but eventually extended the time frame progressively as discussions stagnated.

The West Qurna-2 oil field produces over 480,000 barrels per day, or almost 10 percent of Iraq’s total crude oil output, and has over 13 billion barrels of recoverable reserves.