Russia’s largest private oil company, Lukoil, has declared a force majeure at its West Qurna-2 oilfield in southern Iraq, one of the world’s largest oil fields and a cornerstone of Iraq’s energy sector. The site produces roughly 480,000 barrels per day—around nine percent of Iraq’s total oil output.
The declaration, made in a formal letter to Iraq’s Ministry of Oil, cited “force majeure conditions” that have made normal operations impossible. The company pointed to the impact of U.S. and U.K. sanctions imposed last month, which have severely disrupted payments, logistics, and crude shipments from the field. As a result, Iraq’s State Oil Marketing Organization (SOMO) has canceled three scheduled crude loadings from Lukoil’s share this month and frozen all financial and crude transfers to the company.
Lukoil, which holds a 75 percent stake in the West Qurna-2 project, has already terminated contracts with foreign staff, leaving only Russian and Iraqi employees on site. Company representatives have reportedly warned Baghdad that Lukoil may fully withdraw from the project if the situation is not resolved soon.
A force majeure declaration is a contractual clause that allows a party to suspend or withdraw from its obligations when unforeseen and uncontrollable events—such as sanctions, wars, or natural disasters—make performance impossible.
Analysts suggest that the sanctions could lead to a reduction in Iraq’s overall oil production and government revenues, as Baghdad may face challenges adapting to the restrictions while under pressure from Washington.
The development follows U.S. President Donald Trump’s October 22 sanctions on both Rosneft, Russia’s state-owned oil company, and Lukoil—the first new sanctions on Russia since Trump’s return to office. Since the summer, Washington has sought to limit global purchases of Russian oil, targeting key buyers such as China and India. However, despite tariffs and diplomatic efforts, both countries have continued to import Russian energy, underscoring the limits of U.S. sanctions policy.