Pipeline leak shuts down Iraq’s West Qurna 2 oilfield

Shafaq News – Baghdad

Iraq has halted oil production at Lukoil’s West Qurna 2 field after a leak was detected on an export pipeline, two Iraqi energy officials told Reuters on Monday.

West Qurna 2 is one of the largest oil fields in the world. It produces nearly 0.5 percent of global output and provides about 9 to 10 percent of Iraq’s total daily production.

According to Reuters, operations at the field have already been under force majeure since early November after US and UK sanctions on Lukoil disrupted activities. On November 10, Baghdad transferred operational control to the state-owned Basra Oil Company and Maysan Oil Company.

Lukoil owns a 75 percent stake in the project, while the Iraqi government holds 25 percent. Companies including ExxonMobil and BP have shown interest in acquiring Lukoil’s share, and the Oil Ministry has signaled that it favors American operators at the site.

The field normally produces between 460,000 and 480,000 barrels per day and holds an estimated 13 billion barrels of recoverable reserves. In 2023, Lukoil announced plans to raise output to 800,000 barrels per day.