Production halted at key Basra oil field operated by Russia’s Lukoil: Sources

ERBIL, Kurdistan Region - Iraqi oil ministry sources told Rudaw on Monday that production at Basra’s West Qurna-2 oil field - located northwest of the southernmost Basra province and operated by Russia’s oil giant, Lukoil - was halted due to a leak in an export pipeline. This as unconfirmed media reports have relayed that output has been restored.

The field is one of Lukoil’s most valuable foreign assets, producing roughly 480,000 barrels per day.

Two sources, one from the Iraqi oil ministry and another from the Basra Oil Company, confirmed to Rudaw on Monday evening that production and work at the field had been stopped because of “a leak in one of the export pipelines.” Baghdad’s oil ministry is set to issue a formal statement later, they further noted.

Reuters later cited two Iraqi energy officials saying that output was restored after a brief outage.

Last week, the ministry said it is seeking to bring in major US companies to take over management of the field, stating it is “directing exclusive invitations to a number of major American oil companies and entering into direct negotiations with them to submit their bids and compete transparently among themselves, with the aim of transferring management of the West Qurna-2 field to one of these companies.”

The ministry said the effort is aimed at maintaining sustainable production and ensuring stable flows of Iraqi oil to global markets.

The shift followed fresh US sanctions imposed in October on Russia’s Rosneft and Lukoil, with Washington citing Moscow’s lack of “a serious commitment” to ending the war in Ukraine as justification.

The US Treasury Department later issued limited licenses in mid-November allowing some Lukoil operations abroad to continue.

Iraqi Prime Minister Mohammed Shia’ al-Sudani met Lukoil founder Vagit Alekperov in mid-November to discuss a “solution” to the impact of the sanctions on the company and Iraq’s production.

Around the same time, Reuters reported that Lukoil had declared force majeure at West Qurna-2, located about 65 kilometers northwest of Basra.

Russia’s ambassador to Iraq, Elbrus Kutrashev, told Rudaw in November that Russian energy companies - including Lukoil, Gazprom, and Rosneft - remain active in Iraq and the Kurdistan Region despite what he called “illegal” Western sanctions, adding that Lukoil’s investments in Iraq exceed $11 billion.