Iraqi PM and Ex-Lukoil CEO Discuss Strategic Oil Disruptions Amid Sanctions

Iraqi Prime Minister Mohammed Shia al-Sudani and former Lukoil CEO Vagit Alekperov discussed solutions for disruptions in the West Qurna-2 oil field operations, following U.S. sanctions against Russian oil firms. The field produces 9% of Iraq's oil, but force majeure could lead to production halt.

Iraqi Prime Minister Mohammed Shia al-Sudani held talks with Vagit Alekperov, former CEO of Russia's Lukoil, to address operational challenges at the West Qurna-2 oil field caused by recent U.S. sanctions.

Lukoil declared force majeure at West Qurna-2, one of Iraq's key oil sites producing 9% of the nation's output. The sanctions are part of U.S. President Donald Trump's efforts to end the ongoing conflict in Ukraine.

Although production continues normally at approximately 480,000 barrels per day, officials have warned that extended force majeure could result in financial issues and potential production declines. Payments and crude allocations to Lukoil have been halted as Iraq seeks alternatives to sustain operations without violating the sanctions.

(With inputs from agencies.)