Officials say Iraq is discussing a six-month waiver for US Lukoil sanctions.

Three Iraqi energy officials said on Monday that the Iraqi government was considering a request for a six-month waiver of sanctions from the U.S. Treasury Department to allow Lukoil more time to dispose of its stake in West Qurna-2, a giant oilfield. Lukoil declared force majeure in the field last week. This is the most significant fallout of the sanctions imposed by the U.S. Treasury Department on Russian oil giants Lukoil, and Rosneft, last month, as part President Donald Trump’s efforts to end the conflict in Ukraine.

The Iraqi oil ministry, which spoke on condition of anonymity, has said that the state cannot buy Lukoil’s stake in West Qurna-2 because the project is far too big for Iraqi state companies to handle.

One of the officials stated that "Lukoil’s field is a large bite to eat".

Officials in Iraq said that they were aware of three possible buyers for Lukoil West Qurna-2 interest, including one Chinese company and two Western companies. However, they did not reveal their identities.

Lukoil didn't immediately respond to a request for comment sent via email. The office of the Iraqi prime minister announced on Monday that Mohammed Shia al-Sudani met with Vagit Alekperov who was formerly CEO of Lukoil.

Two Iraqi officials stated that the waiver request was at the heart of the discussion. (Reporting and writing by Aref Mohamed and Ahmed Rasheed, Yousef Taba; editing by Jan Harvey).

(source: Reuters)