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Lukoil Declares Force Majeure at Iraq’s West Qurna-2 After U.S. Sanctions

U.S. sanctions have choked payments, leaving West Qurna-2’s operations and ownership in doubt.

Overview

  • Iraq’s SOMO froze cash and crude payments to Lukoil and canceled three November loadings, including roughly 4 million barrels allocated as in‑kind payments.
  • Lukoil notified Iraq’s oil ministry that force majeure prevents normal operations at West Qurna‑2, one of the world’s largest fields.
  • The field is producing about 480,000 barrels per day, or roughly 9% of Iraq’s output, with Lukoil holding a 75% stake.
  • Lukoil terminated all non‑Russian foreign staff at the site, leaving only Russian and Iraqi personnel in place.
  • A senior Iraqi official said unresolved issues within six months could lead Lukoil to shut production and exit, as a $22 billion asset sale to Gunvor collapsed and Bulgaria moved to prepare a takeover of Lukoil’s Burgas refinery.