Lukoil's International Struggles: Sanctions and Seizures

Lukoil has declared force majeure at its West Qurna-2 oil field in Iraq due to U.S. sanctions pressure, potentially shutting down operations in six months. Concurrently, Bulgaria is set to seize the company's Burgas refinery. These moves are part of a larger fallout from international sanctions against Russian oil companies.

Lukoil has declared force majeure at its key Iraqi oil field, West Qurna-2, as reported by sources to Reuters on Monday. This development comes amid U.S. sanctions, which have pressured Lukoil's international operations, threatening their stability and effectiveness globally.

The West Qurna-2 oil field is one of the largest globally, contributing significantly to Iraq's oil output. Lukoil's inability to resolve the issues surrounding the sanctions within six months could lead to a complete shutdown of operations at the site, a significant loss for the company.

Simultaneously, Bulgaria is prepared to seize the Burgas refinery, stepping up inspections and security measures. This comes after legal adjustments to facilitate government control and potential sale to a new owner, marking another significant impact of the sanctions on Russian oil enterprises.