Iraq has stepped in to pay the salaries of workers at the West Qurna-2 oilfield, operated by Russia’s Lukoil, after US sanctions made it impossible for the company to transfer funds. Officials said the move was necessary to keep oil production on track and prevent disruptions to exports.
The West Qurna-2 field is one of Iraq’s largest and most important, producing between 450,000 and 500,000 barrels per day. Globally, it accounts for about 0.5% of oil supply, and roughly 9% of Iraq’s total output. Any drop in production could have a noticeable effect on the world oil market.
The US imposed sanctions on Lukoil on October 22, blocking the company from sending money to Iraq. In response, Baghdad acted quickly to ensure workers were paid and production continued smoothly.
The Iraqi Oil Ministry said West Qurna-2 plays a key role in the country’s economy, supporting public revenue through exports and providing jobs in nearby districts. The field is also a cornerstone of Iraq’s plan to raise oil output to eight million barrels per day by 2027.
Lukoil has reported a crisis at the site due to the US restrictions, and Iraq has halted direct financial transfers to the company. Officials warn that any unexpected developments could disrupt production and show just how sensitive Iraq’s oil output is to global political and economic pressures.
