West Qurna-2 in southern Iraq is one of the world’s largest oilfields. ExxonMobil has been in discussions to acquire a major stake currently held by Lukoil, a move that would further anchor its upstream presence in the Middle East and reshape long-term production dynamics out of Basra.
West Qurna-2 lies in Iraq’s Basra region and hosts multi-billion-barrel recoverable reserves, placing it among the largest oilfields globally. The project is developed under service contracts with the Iraqi state, with international partners providing capital, technology and project execution.
Production from West Qurna-2 feeds into Iraq’s broader strategy to lift output while modernising export infrastructure at southern terminals along the Gulf.
For any incoming operator or major equity holder, the field offers long-life barrels, scale and exposure to one of the most important crude export hubs in the world.
West Qurna-2 has been developed under a technical service contract model, aligning the interests of Iraq’s Ministry of Oil with those of international operators and service partners. Capital is deployed against a fee-per-barrel profile and long-term plateau targets.
Any transition in stake ownership or operatorship has to be agreed with Baghdad and coordinated with existing partners to ensure continuity of production and investment.
For ExxonMobil, a major stake would need to integrate smoothly into this framework while maintaining Iraq’s objectives on production, revenue and local content.
ExxonMobil’s upstream portfolio has long been anchored in large, long-cycle assets with material reserves. A major position in West Qurna-2 would add another core resource base in the Middle East alongside its existing footprint in other producing countries.
The combination of sizeable reserves, scope for improved recovery and access to export routes makes the field attractive for companies focused on scale and operational efficiency.
For portfolio managers and traders, any confirmed change in ownership or operatorship at West Qurna-2 is a signal worth watching as it can influence medium-term supply expectations out of Iraq.
Iraq’s West Qurna-2 oilfield combines very large reserves with long-term production potential, making it a strategic upstream asset for any international operator. Against this backdrop, reported discussions around ExxonMobil acquiring a major stake in the project are attracting close attention from producers, traders and market analysts.
West Qurna-2 hosts multi-billion-barrel recoverable reserves, placing it among the largest oilfields in Iraq and globally, with significant scope for long-term production.
Lukoil has been the main international operator alongside Iraqi state entities. Any stake transfer to ExxonMobil would reshape how capital and expertise are deployed at the field.
West Qurna-2 production has grown through phased development, with plateau output and enhanced recovery strategies shaping the field’s contribution to Iraq’s export mix.
As an anchor field for Iraq’s southern exports, West Qurna-2 influences crude flows into key Asian and European markets, linking project decisions directly to trading and pricing views.
14 Billion Barrels of Reserves
West Qurna-2 is estimated to hold around 14 billion barrels of recoverable reserves, making it one of the largest oilfields in Iraq’s long-term production portfolio.
800,000 Barrels per Day Capacity
Fully developed, West Qurna-2 has the potential to support up to 800,000 barrels per day of output, subject to investment levels and plateau targets agreed with Iraq.
75% Ownership Stake Under Negotiation
Reports indicate that a 75% ownership stakecurrently held by Lukoil is at the centre of ongoing discussions, with ExxonMobil viewed as a potential incoming partner.
For Iraq, West Qurna-2 is central to building sustainable export capacity out of Basra and securing budget revenues. For ExxonMobil and other international partners, it represents a chance to add long-life, low-lifting-cost barrels in a region that will continue to shape global supply.
Any confirmed change in the field’s ownership or operator mix would be closely watched by upstream investors, physical traders and risk managers tracking medium-term supply and infrastructure developments across the Gulf.
West Qurna-2’s story runs from early field development through phased capacity build-out and now potential shifts in partnership structure. Below is a simplified high-level view.
Initial agreements between Iraq and international partners set out technical service terms, investment frameworks and long-term production targets for West Qurna-2.
Outcome: Field moves from planning into large-scale development mode.
Phased drilling, facilities construction and export link upgrades support growing production and integration into Iraq’s southern export system.
Outcome: Material incremental volumes added to Basra-linked exports.
As production ramps up, partners and the Ministry of Oil optimise development plans, recovery strategies and investment cadence to balance costs and output.
Outcome: Focus on operational efficiency and long-term field performance.
Lukoil signals interest in reducing or exiting its position, prompting discussions with Iraqi authorities and potential incoming partners such as ExxonMobil.
Outcome: Negotiation phase around ownership structure and future operatorship.
If agreed, ExxonMobil could assume a major stake, aligning West Qurna-2 with its global upstream portfolio and bringing additional technical and project-management capacity to the field.
Outcome: Potential reshaping of the partner landscape at a key Iraqi asset.
Explore ExxonMobil’s global upstream portfolio, strategic focus areas and official communications on projects across the Middle East and beyond.
Visit ExxonMobil →Check official releases and statements from Iraq’s Ministry of Oil on licensing rounds, field development plans and strategic upstream priorities.
Iraq Oil Ministry →Follow international reporting on Iraq’s upstream sector, OPEC decisions and project-level news that influence medium-term supply expectations.
Reuters Energy Coverage →West Qurna-2 is located in southern Iraq near Basra, tying into the broader export infrastructure used to ship crude from Iraq’s Gulf terminals to customers worldwide.
Public estimates suggest that West Qurna-2 holds around 14 billion barrels of recoverable reserves, which places it among the largest oilfields worldwide and a central asset in Iraq’s upstream portfolio.
ExxonMobil has been linked to discussions over acquiring the major stake held by Lukoil in West Qurna-2. Any final agreement would be subject to negotiations with the Iraqi government and existing partners.
Operational changes usually take time and follow detailed transition planning. The immediate focus in any deal is typically on governance, investment commitments and aligning field development plans with state objectives.
Large fields like West Qurna-2 influence medium-term global supply outlooks. For traders, refiners and investors, project-level developments help inform views on regional flows, benchmark dynamics and pricing scenarios.