Lukoil faces sanctions, Iraq wants exemption and is negotiating oil field sale

The Iraqi government is considering asking the U.S. Treasury Department for a six-month waiver from sanctions to give Russian oil giant Lukoil time to sell its stake in the giant West Qurna-2 oil field.

Lukoil declared force majeure on the project following recent sanctions imposed on Russian oil firms by the US as part of President Trump's efforts to end the war in Ukraine.

Iraq's oil ministry rejects the possibility of the state buying a stake, saying the project is too difficult for state firms. According to sources, Iraq is aware of three potential buyers - one Chinese and two Western companies.

Prime Minister Muhammad Shia al-Sudani has already met with former Lukoil chief Vagit Alekperov, with the main point of discussion being the request for an exemption. Lukoil has not yet commented on the situation.

(reuters, mja)