*
Iraq halts all cash and crude payments to Lukoil, sources say
*
US, UK sanctions disrupt Lukoil's international operations
*
Lukoil may exit West Qurna-2 if conditions persist, source says
(Updates with details, background in paragraphs 3-11)
By Aref Mohammed and Ahmed Rasheed
BAGHDAD, Nov 10 (Reuters) - Lukoil has declared force majeure at Iraq's giant West Qurna-2 oilfield, four sources with knowledge of the matter said on Monday, after Western sanctions on the Russian oil major hampered its operations.
Lukoil did not immediately respond to a Reuters request for comment.
The United States and Britain imposed sanctions on Lukoil - Russia's second-largest oil company - last month. And Iraq has since halted all cash and crude payments to the company, three of the sources said.
Lukoil sent an official letter to Iraq's oil ministry last Tuesday saying there are force majeure conditions preventing it from continuing normal operations at the West Qurna-2 field, the four sources said.
If the reasons behind the force majeure are not resolved within six months, Lukoil will shut production and exit the project entirely, a senior Iraqi oil industry official said.
Reuters reported last week that Iraq's state oil firm SOMO cancelled loadings of three crude oil cargoes from Lukoil's equity production at the West Qurna-2 field over the sanctions.
(Reporting by Aref Mohammed and Ahmed Rasheed; Writing by Ahmed Rasheed and Yousef Saba; Editing by Louise Heavens and Joe Bavier)
