What is the status of Lukoil's operations in Iraq?

Lukoil has declared force majeure at its West Qurna-2 oil field in Iraq, one of the world's largest oilfields and the company's most prized foreign asset. This means Lukoil is seeking legal protection against penalties for failing to meet contractual obligations with the Iraqi oil ministry due to the U.S. sanctions.

How is Bulgaria responding to Lukoil's presence in the country?

The Bulgarian government is conducting inspections and implementing security measures at Lukoil's Burgas oil refinery, with plans to seize control of the site. Last week, Bulgaria adopted legal changes allowing it to take over the refinery and sell it to a new owner.

What is the overall impact of U.S. sanctions on Lukoil's international operations?

The sanctions imposed on Lukoil and other Russian oil majors have had a significant impact on the company's global operations. Lukoil is now facing the prospect of losing its most valuable foreign asset in Iraq and seeing its Burgas refinery in Bulgaria seized by the authorities, marking the biggest fallout yet from the sanctions.

Home / Business and Economy / Lukoil Declares Force Majeure at Iraqi Oil Field, Faces Refinery Seizure in Bulgaria

Lukoil Declares Force Majeure at Iraqi Oil Field, Faces Refinery Seizure in Bulgaria

11 Nov

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Summary

Lukoil declares force majeure at its West Qurna-2 oil field in Iraq
Bulgaria prepares to seize Lukoil's Burgas refinery amid U.S. sanctions
Lukoil's international operations facing major challenges due to sanctions

Lukoil Declares Force Majeure at Iraqi Oil Field, Faces Refinery Seizure in Bulgaria

As of November 11, 2025, the Russian oil company Lukoil is facing major challenges in its international operations due to the impact of U.S. sanctions. The company has declared force majeure at its West Qurna-2 oil field in Iraq, one of the world's largest oilfields and Lukoil's most prized foreign asset.

The force majeure declaration, which allows Lukoil to legally avoid contractual obligations, comes as Iraq has halted all cash and crude oil payments to the company due to the sanctions. If the issues are not resolved within six months, Lukoil may be forced to shut down production and exit the West Qurna-2 project entirely.