Iraq approves an 'amicable agreement' with Russia's Lukoil regarding the transfer of operations for giant fields

According to a press release, the 'Iraqi Cabinet approved a "friendly settlement" with Russia's Lukoil on Tuesday regarding the transfer of the West Qurna 2, a giant oil field in the west of Iraq to the state-run Basra Oil Company.

Last month, Iraqi nationalised the oilfields after the U.S. imposed Lukoil sanctions to pressure Russia to end the war in Ukraine.

West Qurna is the largest oilfield in the world, and it accounts for about 0.5% of oil production globally.

West Qurna 2 Oil Field Nationalization comes at a time when talks with U.S. oil major Chevron continue over the field.

Lukoil must sell its assets by?February 28, 2019 to comply with U.S. sanctions.

Three sources said last month that Chevron is in discussions with the Iraqi Oil Ministry to improve the contract terms. Two of the sources stated that Iraqi cabinet approval would be required for any agreement on new terms.

The deal between Chevron and West Qurna 2 will mark the 'next step in Iraq' for the U.S. based oil major after it agreed to develop a number of fields in Iraq as part of its international expansion since completing the deal to purchase a?U.S. Hess, an oil producer, will be acquired by Chevron for $53 billion.

Two officials from the company said that Basra Oil Company took over 'the field's operation for 12 months while they waited for a resolution to a disputed ownership. Reporting by Menna Alaa Al-Din, Muhammad Al Gebaly and Gareth Jones

(source: Reuters)