The Iraqi authorities says it could not work with Russian oil firm Lukoil – which has an enormous stake within the nation’s oil fields – due to lately imposed US sanctions in opposition to the corporate.
Lukoil has instructed Iraq’s state oil firm SOMO that it’s declaring pressure majeure – citing circumstances past its management for its incapacity to fulfill its contract – in accordance to Oil Ministry spokesman Abdul Sahib Bazoun al-Hasnawi.
Lukoil has a 75% stake within the large West Qurna-2 subject in southern Iraq, which produces greater than 400,000 barrels of crude oil a day. Overall, its overseas assets are valued at greater than $20 billion.
Al-Hasnawi instructed NCS that Lukoil was unable to pay the salaries of tons of of staff, most of them Iraqis, due to the sanctions announced by US President Donald Trump on October 22.
NCS has reached out to Lukoil for remark.
Lukoil failed in its bid to promote its overseas operations to an Austrian-based firm final week after the US Treasury intervened to block the transfer and its world assets are actually at risk, in accordance to business analysts.
Companies working in Iraq “must be completely free from any operations, suspicions, or sanctions that may be issued … by the US Treasury or even the European Union,” in accordance to Ali Nizar al-Shatari, director normal of Iraq’s State Oil Marketing Organization recognized as SOMO.
“All payments for exported oil and petroleum products are processed through the SWIFT (international transactions) system, which prohibits participation by sanctioned or high-risk entities,” al-Shatari stated in a video assertion final week.
SOMO has suspended crude oil funds owed to Lukoil for the month of November – estimated at round 4 million barrels.
“Lukoil’s dues remain frozen until a compliant payment mechanism is established,” al-Shatari stated.
Industry analysts say that a number of Lukoil shipments from Iraq have been scheduled for this month.
Lukoil had tried to promote its overseas assets to Gunvor, a Swiss-based oil dealer, however withdrew its bid after the US Treasury stated it will “never” grant Gunvor a license to function the assets.
Lukoil said on October 30 that it had accepted a proposal from Gunvor to purchase its subsidiary Lukoil International GmbH, which owns the worldwide assets of Lukoil Group.
But final Thursday, the US Treasury stated in a put up on X that “as long as (Russian President Vladimir) Putin continues the senseless killings (in Russia’s war on Ukraine), the Kremlin’s puppet, Gunvor, will never get a license to operate and profit.”
Lukoil International has a 5% stake within the Chevron-operated Tengiz oil growth in Kazakhstan, as effectively as refineries in Romania and Bulgaria and a worldwide buying and selling operation managed by a Swiss-based subsidiary.
The Bulgarian authorities have tightened safety across the Lukoil refinery in Burgas, in accordance to state media, whereas the federal government drafts laws that may permit it to take management of the refinery and promote it to a brand new proprietor to defend the plant from US sanctions.
Last week the Finnish service station chain Teboil, additionally owned by Lukoil, was operating out of gasoline as sanctions in opposition to the guardian firm prevented it from doing enterprise.
Last month, Finnish vitality agency Neste suspended gasoline deliveries to Teboil following the US measures in opposition to Lukoil.