Iraq ceased collaboration with Lukoil and terminated shipments from the West Qurna-2 region.
The Russian oil firm Lukoil has announced a force majeure situation at the West Qurna-2 area in Iraq, where it possesses a 75% shareholding.
This is reported by Reuters.
It represents the firm's most substantial foreign holding, encompassing roughly 14 billion barrels of petroleum reserves and yielding nearly 500,000 barrels each day.
As per the news outlet, Iraqi governing bodies have halted all remittances to the Russian entity, covering both monetary and petroleum provisions. Insiders revealed that the state oil enterprise SOMO has already called off three scheduled dispatches of crude produced by Lukoil.
This determination stemmed from US penalties, which are making things difficult for Russian businesses operating in the Middle East. An official from the Iraqi Petroleum Ministry mentioned that the nation is unable to collaborate with entities under sanction and must halt collaboration until the firm's juridical standing is made clear.
Lukoil informed the Iraqi administration of the virtual cessation of standard activities at the oil field and cautioned that it might completely exit the venture in half a year if the circumstances remain unchanged.
The West Qurna-2 oil field ranks as one of the world's largest and is vital for Iraq's energy landscape. Lukoil's possible departure could influence the nation's petroleum output and diminish Russia's foothold in the Middle Eastern energy arena.
