CAIRO: Iraq’s cabinet on Tuesday approved an “amicable settlement” with Russia’s Lukoil over the transfer of operations of the giant Western Qurna 2 oil field to state-run Basra Oil Company, according to a statement.
Last month, Iraq nationalized its oil fields after the United States imposed sanctions on Lukoil to pressure Russia to end the war in Ukraine.
The West Qurna oil field is one of the world’s largest oil fields, accounting for about 0.5% of the world’s oil supply and almost 10% of Iraq’s output.
The nationalization of the West Khulna 2 oil field comes amid ongoing negotiations with US oil giant Chevron over the field.
Lukoil must sell its assets by February 28 under U.S. sanctions.
Three sources told Reuters last month that Chevron and Iraq’s oil ministry were in talks to improve the terms of the deal. Two of the three sources said any agreement on new terms would require approval from Iraq’s cabinet.
Chevron’s deal in West Qurna 2 marks a further foray into Iraq for the US oil major, which has agreed to develop several oil fields in the country as part of its international expansion since completing a deal to buy US oil producer Hess for $53 billion in 2025.
Basra Oil Company has taken over operations of the field for 12 months pending resolution of ownership issues, two company executives told Reuters. (Reporting by Menna Alaa El-Din and Muhammad Al Gebaly; Editing by Gareth Jones)
