Iraq restored Lukoil’s West Qurna 2 oilfield output after a pipeline leak. The field produces ~460K barrels/day, 9% of Iraq’s output. Lukoil declared force majeure last month due to sanctions

According to two Iraqi energy authorities speaking to Reuters on Monday, Iraq has restarted production at Lukoil’s West Qurna 2 oilfield, one of the world’s largest, after a pipeline leak caused a significant drop in output.

Lukoil declared force majeure at West Qurna 2 last month when, along with Rosneft, it was impacted by sanctions related to U.S. President Donald Trump’s efforts to stop the conflict in Ukraine. The field produces about 460,000 barrels of oil per day, representing approximately 0.5% of global oil supply and 9% of Iraq’s total production. Iraq is the second-largest OPEC producer, following Saudi Arabia. One source indicated that full operations at the field are expected to resume soon as oil wells are reactivated. Lukoil’s 75% operating stake in the field represents its largest foreign holding.

Iraq has often exceeded its production targets as agreed upon with OPEC and its allies, including Russia, in the OPEC+ agreement. The sanctions have attracted a growing number of potential buyers for Lukoil’s global assets, including major oil companies like ExxonMobil and Chevron, the U.S. private equity firm Carlyle, and IHC, an Abu Dhabi-based conglomerate headed by a prominent member of the United Arab Emirates’ royal family.

starfeu.com