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Lukoil declares force majeure in Iraq over US sanctions, sources say
Lukoil halted operations at West Qurna-2 due to frozen payments from Western sanctions, impacting about 9% of Iraq's total oil production, officials said.
- On Monday, Lukoil declared force majeure at the West Qurna-2 oilfield, Iraq, located 65 kilometres northwest of Basra, citing a letter to Iraq's oil ministry last Tuesday.
- The United States and Britain imposed sanctions last month that affected Lukoil's operations, and Iraq's state oil authorities have frozen payments until a non‑sanctioned mechanism is secured.
- Iraqi officials said the contract allows a force majeure declaration and grants Lukoil legal protection from penalties, but a senior Iraqi oil industry official warned the company could shut production and exit if unresolved within six months.
- Producing around 480,000 barrels per day, West Qurna-2 accounts for about 9% of Iraq's total oil production, with Lukoil's 75% stake since 2014 and planned $30 billion investment making it its most prized foreign asset.
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Russian oil firm’s multibillion-dollar assets overseas at risk as US sanctions begin to bite
The Iraqi government says it can no longer work with Russian oil company Lukoil – which has a huge stake in the country’s oil fields – because of recently imposed US sanctions against the company.
·Atlanta, United States
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Lukoil declares force majeure in Iraq over US sanctions, sources say
Lukoil declared force majeure at its Iraqi oil field, sources told Reuters on Monday, and Bulgaria was poised to seize its Burgas refinery, as the Russian company's international operations buckled under the strain of U.S. sanctions.
·United Kingdom
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Coverage Details
Total News Sources33
Leaning Left8Leaning Right3Center11Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 36%
C 50%
14%
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