Iraq discusses seeking six-month waiver of US Lukoil sanctions, officials say

Iraq's government is discussing seeking a six-month sanctions waiver from the U.S. Treasury Department for Lukoil to have more time to sell its stake in the giant West Qurna-2 oilfield, three Iraqi energy officials told Reuters on Monday.

Lukoil has declared force majeure on the field, Reuters reported last week, marking the biggest fallout from the sanctions imposed on Russian oil majors Lukoil and Rosneft last month as part of U.S. President Donald Trump's push to end the war in Ukraine.

Iraq's oil ministry has ruled out the state buying Lukoil's stake in West Qurna-2, arguing the project is too large for Iraqi state-run companies to operate, the energy officials said, speaking on the condition of anonymity.

"Lukoil's field is a big bite to chew," one of the officials said.

Iraq is aware of at least three potential buyers of Lukoil's interest in West Qurna-2, one Chinese and two Western companies, the officials said, but did not provide further details on their identities.

Lukoil did not immediately respond to an emailed request for comment. Iraqi Prime Minister Mohammed Shia al-Sudani has met with former Lukoil CEO Vagit Alekperov, the prime minister's office said on Monday.

The waiver request was the core issue discussed, two of the Iraqi officials said.

(Reuters)