Russian oil giant “Lukoil” has declared force majeure at one of the worldʼs largest oil fields, West Qurna-2 in Iraq.
Reuters reports this, citing four sources.
The United States and Britain imposed sanctions on “Lukoil” in October. Three sources said Iraq has since suspended all cash and oil payments to the company.
According to four sources, on November 4, “Lukoil” sent an official letter to the Iraqi Ministry of Oil, stating that force majeure circumstances prevent normal operations at the West Qurna-2 field.
A senior Iraqi oil industry official said that if the force majeure reasons are not resolved within six months, “Lukoil” will halt production and withdraw from the project entirely.
US sanctions against “Lukoil” and “Rosneft”
The US President Donald Trump imposed sanctions on “Lukoil”, “Rosneft", and their subsidiaries on October 23. The list includes more than 30 units of both companies, including oil fields, gas fields, and refineries across the country.
In just two days, the shares of both companies have fallen, with Russiaʼs largest oil corporations losing a combined $5.2 billion. “Lukoil” shares fell 7.2%, resulting in a loss of $3.66 billion. “Rosneft” shares fell 3%, taking $1.56 billion with them.
“Rosneft” and “Lukoil” account for almost half of Russiaʼs daily oil production. For example, “Rosneft” generates approximately 17% of Russiaʼs budget revenues.
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