Switzerland – Swiss conglomerate Gunvor announced it is withdrawing its bid to acquire Russian oil company Lukoil’s global assets, including its facilities in Iraq, following opposition from the US Treasury Department.
This development came after Lukoil declared force majeure at the West Qurna-2 oil field, one of the world’s largest, located in southern Iraq. This occurred as a result of US sanctions imposed on the company, according to the Russian news site Lenta.ru.
Sources in the oil sector explained that Lukoil has suspended the activities of foreign staff at the project. Only Russian and Iraqi technicians remain, with the possibility of a complete withdrawal unless circumstances change.
The joint venture is currently 75% owned by Lukoil, while the Iraqi state-owned North Oil Company holds the remaining 25%. The field produces approximately 480,000 barrels per day.
Under the 25-year agreement, Lukoil bears the full cost of the project. In return, the Iraqi side receives a share of the revenues, but the current situation is disrupting operations and threatening production.
