Russia's Lukoil declares force majeure at giant oil field — Reuters
Photo: Lukoil declares force majeure at giant oil field (Getty Images)
Lukoil has reported a force majeure at the giant West Qurna-2 oil field in Iraq and suspended operations there, Reuters reports.
Last month, the US and the UK imposed sanctions on Lukoil, Russia's second-largest oil company. According to three sources, Iraq has since suspended all cash and oil payments to the company.
Last Tuesday, Lukoil sent an official letter to the Iraqi Ministry of Oil stating that force majeure circumstances are preventing the company from continuing normal operations at the West Qurna-2 field.
The Russian company owns 75% of this project with a production capacity of about 480,000 barrels per day, and the remaining share belongs to Iraq's North Oil Company.
According to the agency, if the force majeure circumstances are not resolved within six months, Lukoil will cease production and withdraw from the project entirely, a senior Iraqi oil industry official said.
Sanctions against Lukoil
Earlier, the US government decided to tighten sanctions against Russia over the war in Ukraine. They imposed restrictions on two Russian oil giants, Rosneft and Lukoil.
The sanctions are expected to take effect on November 20, but they are already causing damage to the Russian economy. In particular, Indian oil refineries have announced their intention to reduce purchases of Russian oil.
At the same time, there have been recent reports that Lukoil may sell its foreign assets to the Swiss company Gunvor.
