U.S. sanctions on Lukoil threaten Iraq oil production drop

BASRA - Iraq is scrambling to keep nearly half a million barrels of daily oil production online, following an Oct. 22 U.S. sanctions designation against Lukoil, operator of the West Qurna-2 oil field.

Lukoil's Iraq operations have already been severely disrupted, ahead of the sanctions effective date of Nov. 21, multiple Oil Ministry officials said. Payroll, contract relationships, and equipment purchases at the 480,000 barrel per day (bpd) West Qurna-2 field have been obstructed; development works at a second major Lukoil-operated oil field have been halted; and crude oil payments to Lukoil have been suspended by the national oil marketer SOMO.