Exxon Mobil is reportedly seeking to buy Russian oil major Lukoil’s majority stake in Iraq’s West Qurna 2 oilfield, as Lukoil divests from its international assets amid Western sanctions.
Exxon has discussed a potential purchase with Iraq’s Ministry of Oil, Reuters reported. West Qurna 2 represents about 0.5% of global oil supply, and is Lukoil’s largest international asset.
Iraq’s government previously said it would invite a select group of U.S. oil companies to negotiate a purchase of Lukoil’s 75% stake in West Qurna 2. Chevron has also been interested in purchasing Lukoil’s assets, per Bloomberg.
The United States imposed sanctions on Lukoil in October due to Russia’s reluctance to negotiate an end to its invasion of Ukraine. “Given President [Vladimir] Putin’s refusal to end this senseless war, Treasury is sanctioning Russia’s two largest oil companies that fund the Kremlin’s war machine,” U.S. Treasury Secretary Scott Bessent said at the time.
Lukoil dissolved the board of its international business following the U.S. sanctions, and said it would divest from these assets.
The company has been granted a sanctions waiver by the U.S. until 13 December as it struggles to find a buyer, however. Swiss-based Gunvor withdrew an offer last month after the U.S. said it would block a potential sale.
Lukoil declared force majeure at West Qurna 2 after Gunvor’s bid was revoked.
The United Kingdom has also delayed its sanctions on Lukoil from taking effect until 26 February.
Lukoil’s Finnish subsidiary Teboil, began closing its petrol stations in November and has filed for corporate restructuring.
The company’s operations in Bulgaria are being overseen by a government-appointed special administrator, with Bulgarian officials saying this week that there has been no formal investor interest in Lukoil’s assets in the country.
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