Lukoil has announced the introduction of force majeure at the West Qurna-2 field in Iraq. This occurred after Western sanctions complicated the company's operations. Reuters reports this, citing informed sources. It is alleged that the Iraqi authorities have ceased all monetary and oil settlements with Lukoil.
In an official letter sent last week to the Iraqi Ministry of Oil, the company pointed to the existing circumstances that make it difficult to continue its work at the field. If the reasons for the force majeure are not eliminated within six months, Lukoil may completely withdraw from the project, a source in the Iranian oil sector said.
West Qurna-2 is considered one of the largest oil fields in the world. It is located in southern Iraq, approximately 65 km northwest of the port city of Basra. The initial recoverable reserves of this field are about 14 billion barrels, more than 90% of which are concentrated in the Mishrif and Yamama deposits.
Its development is carried out on the basis of a service contract that Lukoil signed in January 2010. The duration of the contract is 25 years. In the project, the Russian company owns a 75% stake, while the remaining 25% is controlled by the Iraqi state-owned North Oil Company. According to the terms of the agreement, all project costs are covered by Lukoil, and the Iraqi company does not bear any costs, receiving only its share of the remuneration.
