Sanctions Snarl Lukoil—Baghdad Pays Up to Protect 480,000 bpd of Oil Production

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Iraq has stepped in to pay local staff at Lukoil's West Qurna-2 oilfield, preventing a potential slowdown in production, which accounts for 0.5% of global oil output and nearly 10% of Iraq's output.

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Market impact analysis based on bullish sentiment with 69% confidence.

Sentiment
Bullish
AI Confidence
69%

Article Context

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Iraq has quietly stepped in to keep one of its most important oilfields from wobbling. After two months of unpaid wages at Lukoil’s West Qurna-2, Baghdad has begun paying local staff directly, advancing December salaries to prevent a slowdown at a field that supplies roughly 0.5% of global oil and nearly a tenth of Iraq’s output—production that Iraq cannot replace from elsewhere. This is the first visible stress fracture in West Qurna-2 since Washington’s October 22 sanctions froze Lukoil’s ability to move money across…

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Original article published by OilPrice.com on November 25, 2025.
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