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Lukoil Declares Force Majeure Amid Iraq Oil Sanctions

11/11/2025

48 6 Full Breakdown

Summary

Story summary

Lukoil has declared force majeure at the West Qurna-2 oilfield in Iraq due to Western sanctions disrupting operations.
The field, about 65 kilometers from Basra, produces roughly 480,000 barrels per day, about 9% of Iraq's output.
Following U.S. and British sanctions, Iraq has halted all cash and crude payments to Lukoil.
If unresolved within six months, Lukoil may shut down production and exit the project.

History

Historical Context

The U.S. invasion of Iraq in 2003 significantly impacted its oil industry, leading to foreign investments like Lukoil's West Qurna-2 project, which produced 480,000 barrels per day, about 9% of Iraq's output. However, ongoing Western sanctions have disrupted operations, echoing historical geopolitical tensions that threaten Iraq's oil sector stability and Lukoil's future involvement.

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Story summary

Lukoil has declared force majeure at the West Qurna-2 oilfield in Iraq due to Western sanctions disrupting operations.
The field, about 65 kilometers from Basra, produces roughly 480,000 barrels per day, about 9% of Iraq's output.
Following U.S. and British sanctions, Iraq has halted all cash and crude payments to Lukoil.
If unresolved within six months, Lukoil may shut down production and exit the project.

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