Russian oil giant Lukoil has declared force majeure at its West Qurna-2 oil field in Iraq, marking the most significant impact yet from recent U.S. sanctions on Lukoil and Rosneft.
According to the Reuters, the sanctions—part of Washington’s efforts to pressure Russia over the Ukraine war—have disrupted Lukoil’s international operations and halted its attempts to sell foreign assets to Switzerland’s Gunvor.
The West Qurna-2 field, producing around 480,000 barrels per day (about 9% of Iraq’s output), faces potential shutdown if issues persist for six months. Iraq’s SOMO has suspended crude loadings, payments, and in-kind oil allocations to Lukoil pending a new payment mechanism that complies with sanctions.
Meanwhile, Bulgaria is preparing to seize Lukoil’s Burgas refinery, after passing legal changes to allow state control and potential resale. The government has begun inspections and security measures to ensure continued operations during the transition.
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