Iraq and US discussing lifting of sanctions on Lukoil – Reuters
Illustrative photo: Iraq needs more time to sell its stake in Lukoil’s oil field (Getty Images)
The Iraqi government is discussing with the US Treasury the possibility of a six-month sanctions waiver for the company Lukoil. This is necessary for the country to have more time to sell its stake in the West Qurna-2 oil field, Reuters reports.
Three Iraqi officials from the energy sector told the agency that Iraq’s Ministry of Oil does not plan to buy Lukoil’s stake in the field. The reason is that the project is too large for Iraqi state-owned companies.
"Lukoil's field is a big bite to chew," one of the officials said.
Iraq is aware of at least three potential buyers for Lukoil’s stake in the oil field: one Chinese company and two Western companies.
Lukoil did not respond to the agency’s request for comment.
Today, November 17, Iraqi Prime Minister Mohammed Shia al-Sudani met with former Lukoil CEO Vagit Alekperov. According to Iraqi officials, the main topic of discussion was a request for the lifting of sanctions.
Previously, oil giant Lukoil declared a "force majeure" at the West Qurna-2 oil field in Iraq, which led to a halt in operations.
The Russian company owns 75% of the project, with a production capacity of around 480,000 barrels per day. The remainder is owned by Iraq’s North Oil Company.
Earlier, the US imposed sanctions on two Russian oil companies, Lukoil and Rosneft. Afterward, several EU countries where Lukoil owns refineries began seeking solutions to prevent the shutdown of their plants.
