Iraq steps in to pay salaries to maintain Lukoil’s output
The Iraqi government has arranged the payment of delayed salaries for local staff at the Lukoil-operated West Qurna-2 oilfield, to ensure production continues despite U.S. sanctions on the Russian company, three Iraqi energy officials said. Any cut in production or exports from the field would have implications for the world oil market, as Qurna-2 accounts for about 0.5% of world supply and around 9% of the total oil output in Iraq, OPEC’s second-largest producer after Saudi Arabia. The U.S. sanctions announced on October 22 made it difficult for Lukoil to transfer funds to Iraq, forcing the government to intervene and facilitate payment. Previously, Lukoil paid Iraqi staff at the field via monthly bank transfers.
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