Baghdad (IraqiNews.com) – LUKOIL has declared a crisis at Iraq’s massive West Qurna-2 oilfield after US sanctions impeded the Russian firm’s operations.
Last Tuesday, LUKOIL sent an official letter to the Iraqi Oil Ministry stating that a crisis prevented it from performing normal operations at the West Qurna-2 oilfield, according to Reuters.
An official in Iraq’s oil sector clarified that LUKOIL would stop production and completely withdraw from the project if the cause for the extraordinary circumstances is not resolved within six months.
According to Reuters, the State Organization for Marketing of Oil (SOMO) has cancelled shipments from Lukoil’s equity output at the West Qurna-2 oil field due to the sanctions.
The shipments were scheduled to load on November 11, 18, and 26.
LUKOIL’s primary overseas asset is Iraq’s West Qurna-2 oil field, one of the world’s largest, in which it has a 75 percent stake.
LUKOIL attempted to sell its global assets in response to sanctions imposed by US President Donald Trump to force Russia into agreeing to a cease-fire in its war with Ukraine. However, Switzerland’s Gunvor Group has canceled its intention to buy the Russian firm’s worldwide assets, including facilities in Iraq, due to resistance from the US Treasury Department.
The US Treasury Department announced that Gunvor would not receive a license to operate while Russia persists in its military actions in Ukraine.
