Russia’s largest private oil company, Lukoil, has stopped producing at one of its largest fields after President Putin’s decree banned cooperation with Western companies.

Lukoil logo on a building

Lukoil has suspended operations at the Korchagin field in the Caspian Sea, part of the Yury Korchagin oil and gas condensate field, due to the impossibility of continuing work with foreign partners. The decision was made after Russian President Vladimir Putin signed a decree in July 2022 banning cooperation with companies from countries that imposed sanctions against Russia, including the French company TotalEnergies, which was a partner in the project.

The field, which produced about 2.5 million tons of oil per year, accounted for approximately 2% of Lukoil’s total production. The suspension of operations at the field could lead to a significant reduction in the company’s production volumes and affect the overall oil production in Russia.

Lukoil has not yet commented on the situation. The company is trying to find ways to continue operations at the field, including possibly changing the structure of the project or finding new partners from countries that have not imposed sanctions against Russia.

Корчагинское месторождение

Korchaginskoye Field is an oil and gas condensate field located in the Caspian Sea, off the coast of Russia. Discovered in 2000 and named after the fictional Soviet hero Pavel Korchagin, it began commercial production in 2010 as part of the larger Caspian offshore development. The field is operated by Lukoil and represents a significant source of hydrocarbons for Russia’s energy sector.

Каспийское море

The Caspian Sea is the world’s largest inland body of water, bordered by Russia, Kazakhstan, Turkmenistan, Iran, and Azerbaijan. Historically, it has been a vital trade route, connecting Europe and Asia via the Silk Road, and its shores were home to ancient civilizations such as the Khazars. Today, it is known for its rich oil and gas reserves, as well as unique ecosystems like the endangered Caspian seal.