Iraq's Strategic Oil Management: Basra Oil Company Takes Charge

The Iraqi cabinet has granted Basra Oil Company control of the West Qurna 2 oil field operations. The move follows a service contract with Russia's Lukoil. Operations financing will be sought through the Majnoon oilfield account. Lukoil faced sanctions amidst US efforts to address the Ukraine conflict.

The Iraqi government has given the green light for the State-run Basra Oil Company (BOC) to manage operations at the West Qurna 2 oil field. This decision aligns with a service contract previously established with Russian energy giant Lukoil, according to an official statement.

In a bid to ensure smooth financial operations, the cabinet has also resolved to seek necessary approvals to fund activities via the Majnoon oilfield account. This account is expected to be supplemented by revenue generated from crude oil shipments sold by the state's oil marketer, SOMO.

Last November, Lukoil declared a force majeure at the West Qurna 2 oil field after facing sanctions concurrently imposed on Rosneft. These sanctions were part of efforts by the then U.S. President Donald Trump's administration to curb the ongoing conflict in Ukraine.

(With inputs from agencies.)