Lukoil Declares Force Majeure at Iraqi Oilfield Following Western Sanctions  

A Lukoil company sign at the Filanovskogo oil platform in the Caspian Sea, Russia, October 16, 2018. (Reuters) 
A Lukoil company sign at the Filanovskogo oil platform in the Caspian Sea, Russia, October 16, 2018. (Reuters) 
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Lukoil Declares Force Majeure at Iraqi Oilfield Following Western Sanctions  

A Lukoil company sign at the Filanovskogo oil platform in the Caspian Sea, Russia, October 16, 2018. (Reuters) 
A Lukoil company sign at the Filanovskogo oil platform in the Caspian Sea, Russia, October 16, 2018. (Reuters) 

Russian oil major Lukoil has declared force majeure at Iraq’s giant West Qurna-2 oilfield, four sources with knowledge of the matter told Reuters on Monday, after Western sanctions on the Russian oil major hampered its operations.

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 canceled loadings of three crude oil cargoes from Lukoil’s equity production at the West Qurna-2 field over the sanctions.



Japan Aims to Dig Deep-sea Rare Earths to Reduce China Dependence

Japan's deep-sea drilling vessel, Chikyu is anchored at a pier in Shimizu port, Shizuoka prefecture on September 11, 2013. TOSHIFUMI KITAMURA / AFP/File
Japan's deep-sea drilling vessel, Chikyu is anchored at a pier in Shimizu port, Shizuoka prefecture on September 11, 2013. TOSHIFUMI KITAMURA / AFP/File
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Japan Aims to Dig Deep-sea Rare Earths to Reduce China Dependence

Japan's deep-sea drilling vessel, Chikyu is anchored at a pier in Shimizu port, Shizuoka prefecture on September 11, 2013. TOSHIFUMI KITAMURA / AFP/File
Japan's deep-sea drilling vessel, Chikyu is anchored at a pier in Shimizu port, Shizuoka prefecture on September 11, 2013. TOSHIFUMI KITAMURA / AFP/File

A Japanese research vessel on Monday began a historic voyage to attempt to dig deep-sea rare earths at a depth of 6,000 meters to curb dependence on China.

Scientific drilling boat called the Chikyu left Shimizu Port in Shizuoka around 9:00 am (0000 GMT) for the remote island of Minami Torishima in the Pacific, where surrounding waters are believed to contain a rich trove of valuable minerals.

The test cruise comes as China -- by far the world's biggest supplier of rare earths -- ramps up pressure on its neighbor after Prime Minister Sanae Takaichi suggested in November that Tokyo could react militarily to an attack on Taiwan.

Beijing claims self-ruled Taiwan as part of its territory and has vowed to seize it by force if necessary.

China has long used its dominance in rare earths for geopolitical leverage, including in its trade war with US President Donald Trump's administration.

Chikyu's voyage, delayed by one day due to bad weather, could lead to domestic production of rare earths, said Shoichi Ishii, program director at the Cabinet Office.

"We are considering diversifying our procurement sources and avoiding excessive reliance on specific countries," he told reporters at the port as the ship prepared to leave.

"One approach I believe could be pursued is establishing a process to achieve domestic production of rare earths," he said.

Rare earths -- 17 metals difficult to extract from the Earth's crust -- are used in everything from electric vehicles to hard drives, wind turbines and missiles.

The Japan Agency for Marine-Earth Science and Technology (JAMSTEC) has touted the test as the world's first at such depths.

The area around Minami Torishima, which is in Japan's economic waters, is estimated to contain more than 16 million tons of rare earths, which the Nikkei business daily says is the third-largest reserve globally.

These rich deposits contain an estimated 730 years' worth of dysprosium, used in high-strength magnets in phones and electric cars, and 780 years' worth of yttrium, used in lasers, Nikkei said.

"If Japan could successfully extract rare earths around Minami Torishima constantly, it will secure domestic supply chain for key industries," Takahiro Kamisuna, research associate at The International Institute for Strategic Studies (IISS), told AFP.

"Likewise, it will be a key strategic asset for Takaichi's government to significantly reduce the supply chain dependence on China."

The cruise is scheduled to last until February 14.

Recent media reports said Beijing was delaying Japanese imports as well as rare-earth exports to Tokyo, as their two-month-old spat escalates.

China this month blocked exports to Japan of "dual-use" items with potential military uses, fueling worries in Japan that Beijing could choke supplies of rare earths, some of which are included in China's list of dual-use goods.


Gold, Silver Hit Records After US Probe Targets Fed

FILE - An employee of Pro Aurum gold house lifts 1 Kg silver bars of 999.9 purity besides 1 Kg gold bars in the safe deposit boxes room in Munich, Germany, Friday, April 25, 2025. (AP Photo/Matthias Schrader, File)
FILE - An employee of Pro Aurum gold house lifts 1 Kg silver bars of 999.9 purity besides 1 Kg gold bars in the safe deposit boxes room in Munich, Germany, Friday, April 25, 2025. (AP Photo/Matthias Schrader, File)
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Gold, Silver Hit Records After US Probe Targets Fed

FILE - An employee of Pro Aurum gold house lifts 1 Kg silver bars of 999.9 purity besides 1 Kg gold bars in the safe deposit boxes room in Munich, Germany, Friday, April 25, 2025. (AP Photo/Matthias Schrader, File)
FILE - An employee of Pro Aurum gold house lifts 1 Kg silver bars of 999.9 purity besides 1 Kg gold bars in the safe deposit boxes room in Munich, Germany, Friday, April 25, 2025. (AP Photo/Matthias Schrader, File)

Gold and silver surged to record highs after the US Justice Department targeted the Federal Reserve in an investigation, fueling fears over the bank's independence and raising demand for safe haven assets.

Gold vaulted toward $4,600 an ounce and silver approached $85 for the first time after Fed chair Jerome Powell warned a potential criminal indictment is part of President Donald Trump's pressure campaign on monetary policy decisions.


Saudi Arabia, Japan Sign Memorandum on Peaceful Use of Space

The Saudi Space Agency signed a memorandum of cooperation with the Japanese government on the peaceful use of outer space. (SPA)
The Saudi Space Agency signed a memorandum of cooperation with the Japanese government on the peaceful use of outer space. (SPA)
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Saudi Arabia, Japan Sign Memorandum on Peaceful Use of Space

The Saudi Space Agency signed a memorandum of cooperation with the Japanese government on the peaceful use of outer space. (SPA)
The Saudi Space Agency signed a memorandum of cooperation with the Japanese government on the peaceful use of outer space. (SPA)

The Saudi Space Agency signed a memorandum of cooperation with the Japanese government on the peaceful use of outer space on the sidelines of the Saudi-Japan Ministerial Investment Forum.

The memorandum was signed with Japan’s Cabinet Office, the Ministry of Education, Culture, Sports, Science and Technology, and the Ministry of Economy, Trade and Industry, the Saudi Press Agency reported on Monday.

Minister of Communications and Information Technology and Chairman of the Board of the Saudi Space Agency Abdullah Alswaha represented the agency during the signing.

The move underscores the Kingdom’s commitment to enhancing international cooperation in peaceful space activities and supporting strategic partnerships in the sector. It aims to establish a framework for cooperation in space science and technology, capacity building, and the exchange of expertise, contributing to the development of the space sector and promoting the peaceful uses of outer space.

The Saudi Space Agency affirmed that the agreement builds on the Kingdom’s ongoing efforts to strengthen international partnerships in the space sector and to play an active role in shaping a global space ecosystem that supports research and innovation and serves humanity.