BAGHDAD/MOSCOW: The Iraqi government has arranged the payment of delayed salaries for local staff at the Lukoil-operated West Qurna-2 oilfield, to ensure production continues despite U.S. sanctions on the Russian company, three Iraqi energy officials said.

Any cut in production or exports from the field would have implications for the world oil market, as Qurna-2 accounts for about 0.5% of world supply and around 9% of the total oil output in Iraq, OPEC's second-largest producer after Saudi Arabia.

The U.S. sanctions announced on October 22 made it difficult for Lukoil to transfer funds to Iraq, forcing the government to intervene and facilitate payments, according to the three officials, who declined to be named because they are not authorised to speak to the media. Previously, Lukoil paid Iraqi staff at the field via monthly bank transfers.

"Two months of delayed salaries have been paid after government intervention to make sure production won't be affected," one of the three officials said. The authorities will also advance December salaries, which are paid in Iraqi dinar, to avoid further disruption, he said.

Lukoil did not immediately respond to a request for comment.

Further delays in salary payments risked undermining operations at the field, where Iraqi staff are currently managing production, the three sources said.

The staff received salaries on Thursday after the government stepped in, easing tensions after workers went for two months without pay, the sources said.

Production at West Qurna-2 remains steady at around 460,000 to 480,000 barrels per day, the officials said.

Output from the field is critical for Iraqi export volumes as any decline in production would be impossible to offset from other fields, given current capacity constraints, the officials said. (Reporting by Ahmed Rasheed, Aref Mohammed and Olesya Astakhova, Editing by Alex Lawler and Tomasz Janowski)