Oilprice;

Iraq’s Oil Ministry has revealed that it has sent out exclusive invitations to several major U.S. energy firms to develop the country’s huge West Qurna 2 oilfield following the withdrawal of Russian oil number two Lukoil after Washington ratcheted up sanctions on Moscow. “It’s a huge turnaround in the trajectory it [Iraq] had been headed with Russia and China, marking a massive win for us [the U.S.] and Europe,” a senior legal source who works closely with the U.S. Treasury Department exclusively told OilPrice.com last week. “Stay tuned – there’ll be more of this to come,” he added.

The significance of this sea-change in Iraq’s geopolitical leanings can barely be overstated. Following the increasing perception among the Iraqi people that the U.S. had overstayed its welcome after it removed Saddam Hussein as leader in 2003, Russia and China – in that order – looked to boost their influence across the country for three key reasons. First, it offers a huge repository of oil at the world’s joint lowest average lifting cost of $2-4 per barrel, together with large quantities of associated and non-associated gas. Second, it occupies the geographical heart of the region, lying west of Iran, north of Saudi Arabia and Kuwait, east of Jordan and Syria (with its long Mediterranean coastline offering access to further critical sea routes), and south of Turkey (affording an entry into the European continent). And third, it is a key member of the ‘Shia Crescent of Power’ geopolitical arc that stretches from Iran through Iraq, Syria, and Lebanon, where Shia communities and Iran-backed groups exert significant influence over regional politics, economics, and security. In short, if you are a global superpower or wannabe, Iraq is where you need to be.