Shafaq News – Baghdad
Russian oil company Lukoil declared force majeure at Iraq’s West Qurna-2 oil field, citing operational disruptions caused by US sanctions, sources told Reuters on Monday.
The sanctions, issued by the United States and the United Kingdom last month, target Lukoil and Rosneft, Russia’s top oil producers, in response to Moscow’s stance on the war in Ukraine.
In Iraq, the sanctions have led to the suspension of cash and crude payments to Lukoil and the cancellation of three crude oil cargo loadings from the West Qurna 2 field, where Lukoil holds a 75% stake and Iraq’s North Oil Company holds the remainder. The field produces approximately 480,000 barrels per day.
According to Reuters, Lukoil notified Iraq’s Oil Ministry that “force majeure” conditions prevent it from maintaining normal operations at West Qurna 2. Iraqi oil officials warned that if the issues are not resolved within six months, Lukoil may halt production entirely and withdraw from the project.
The Russian company did not comment on the report.