Lukoil declares force majeure at oil field in Iraq after US sanctions, - Reuters
Russian oil company Lukoil has declared force majeure at the West Qurna-2 oil field in Iraq, one of the largest oil fields in the world. This comes after US sanctions against the corporation hampered its operations.
This was reported by Reuters, citing sources, according to Censor.NET.
Sanctions against Lukoil
Last month, the US and the UK imposed sanctions on Lukoil, Russia's second-largest oil company.
After that, as three of the agency's interlocutors noted, Iraq suspended all cash payments and oil supplies to the company.
The agency's sources also reported that last week Lukoil sent a letter to the Iraqi Ministry of Oil stating that force majeure circumstances were preventing normal operations from continuing at the West Qurna-2 field.
According to a senior Iraqi oil industry official, if the situation is not resolved within six months, the Russian company will cease production and withdraw from the project entirely.
More details
- Western Qurna-2 is one of the largest oil fields in the world and is Lukoil's most valuable foreign asset. It is located 65 kilometers northwest of the southern port of Basra.
- This field accounts for about 9% of Iraq's total oil production. According to two oil industry officials, about 480,000 barrels per day are currently being produced here.
- On October 23, the US Treasury Department announced sanctions against major Russian oil companies Rosneft and Lukoil. The reason for the additional sanctions is Russia's lack of serious commitment to the peace process aimed at ending the war in Ukraine.
