Russia’s Lukoil has declared force majeure on operations at Iraq’s 480,000 b/d-capacity West Qurna-2 field (WQ-2: Lukoil 75%op, North Oil Co 25%), ahead of the implementation of US sanctions on the company on 21 November. The move, coupled with the US last week blocking Lukoil’s planned sale of international assets to trading firm Gunvor (MEES, 7 November), has left Iraq scrambling to maintain operations at one of its largest southern fields.
The oil ministry has transferred Lukoil’s operator role to state firms Basrah Oil Company (BOC) and Missan Oil Company (MOC) on a temporary basis in an effort to maintain production levels, but this is not a sustainable long-term solution. The pair lack the requisite technical expertise and finances to maintain output. Finding a long-term replacement will not be easy for Iraq despite growing IOC interest in the country (MEES, 24 October). (CONTINUED - 1217 WORDS)
