Due to recent US sanctions against the Russian oil giant Lukoil, which has a significant stake in the country’s oil reserves, the Iraqi government claims it can no longer collaborate with the company.
According to Oil Ministry spokesperson Abdul Sahib Bazoun al-Hasnawi, Lukoil has informed Iraq’s national oil company SOMO that it is claiming force majeure, citing uncontrollable conditions for its incapacity to fulfill its contract. Over 400,000 barrels of crude oil are produced daily at the massive West Qurna-2 field in southern Iraq, of which Lukoil owns a 75% share. Over $20 billion is the total value of its foreign assets.
Industry observers claim that Lukoil’s worldwide assets are now in jeopardy after the US Treasury intervened last week to prevent the corporation from selling its international operations to an Austrian-based business.
The director general of Iraq’s State Oil Marketing Organization, or SOMO, Ali Nizar al-Shatari, stated that businesses operating in the country “must be completely free from any operations, suspicions, or sanctions that may be issued… by the US Treasury or even the European Union.”
The SWIFT (international transactions) system, which forbids participation by sanctioned or high-risk firms, is used to handle all payments for exported oil and petroleum products, al-Shatari stated in a video statement last week.
Also Read:
Shaping the Future through AI Solutions: Stefan Kløvning as the Co-founder of Nordic AI
Empowering Humans with AI: Sebastian Knørr Vision Behind Building Nordic AI
