Iraq nationalises oil field partly owned by Lukoil

This was reported by Reuters, according to Ukrinform.

According to two representatives of the state-owned Basra Oil Company, the company will take over the operation of the oil field for 12 months.

‘We want to ensure uninterrupted production, as Iraq is in a state of uncertainty due to US sanctions, and we will be looking for potential buyers for Lukoil's stake for 12 months,’ said one of the Basra Oil representatives.

In November, Lukoil announced force majeure at the West Qurna-2 field because it, like another russian oil producer, Rosneft, was subject to US sanctions.

According to sources, the sanctions attracted the attention of about a dozen investors, including American oil giants Exxon Mobil, Chevron and private investment company Carlyle.

According to the Iraqi oil field manager, production remains stable at around 465-480 thousand barrels per day.

Lukoil's 75% operating stake in the oil field was its largest foreign asset. The company has until 17 January to sell its foreign assets in accordance with the latest deadline set by the US Treasury Department.

The field accounts for about 0.5% of global oil supplies and 9% of production in Iraq, OPEC's second-largest producer after Saudi Arabia.

Source: Ukrinform, Reuters