Zarubezhneft and the Ministry of Oil of Iraq started cooperation in 1967. Zarubezhneft participated in the construction of a number of the most important facilities for Iraqi oil and gas sector, including the construction and commissioning of the largest operating oil field in the country – North Rumaila.

The introduction of sanctions against Iraq in 1991 substantially reduced Zarubezhneft’s activities in the country. The Company, however, continued to implement supply and service contracts under the UN Oil-for-Food Programme.

In 1997 Zarubezhneft, LUKOIL and Mashinoimport signed an exploration and production contract with Iraqi Ministry of Oil for the second stage of the West Qurna oil field under the terms of production sharing agreement.

In 1999 in accordance with the bidding results Zarubezhneft and North Oil Company of Iraq signed a drilling contract for 45 wells in the northern part of the country.

The beginning of US military action against Iraq in 2003 suspended operations and negotiations with Iraqi oil companies.