US extends deadline for Lukoil asset sale; Iraq among the most prominent assets offered
The U.S. Treasury Department has extended the deadline for energy companies to finalize deals to purchase Lukoil’s foreign assets to May 30, 2026, instead of May 1, in a move that reflects the continuing complications associated with sanctions imposed on the Russian energy sector.
The decision comes amid US pressure on Moscow over the war in Ukraine, where sanctions have forced Lukoil, Russia’s second-largest oil producer, to abandon its international portfolio, estimated at around $22 billion.
These assets include projects, oil fields, refineries and fuel stations distributed across several countries, including Iraq, which puts the Iraqi market within the circle of interest in any potential deals, especially with the company having existing investments within the country.
According to the data, the sale attracted the interest of more than 12 buyers, including ExxonMobil, amid strict US conditions stipulating that the Russian company would not receive any direct payments, and that the proceeds would be deposited into frozen accounts subject to US control.
This is the fifth such extension since the sanctions were imposed last October, reflecting the complexity of the negotiations and the sensitivity of the assets at stake, particularly those linked to strategic markets such as Iraq, which could be affected by any changes in the ownership or operation of these oil projects.
The Lukoil West Qurna 2 oil field is one of the largest oil fields in Iraq, located in the southern province of Basra. It is developed and operated by the Russian company Lukoil under a contract with the Iraqi Ministry of Oil. Development of the field began after 2010, and actual production commenced in 2014.
It is considered one of the world’s giant oil fields with its large reserves and production of between 400,000 and 470,000 barrels per day, making it one of the most important sources of oil income for Iraq and contributing significantly to boosting its oil exports.
Shafaq.com