CAIRO: The Iraqi cabinet approved on Tuesday an "amicable ​settlement" with ⁠Russia's Lukoil over the transfer of operations of the ‌giant West Qurna 2 oil field to the state-run Basra Oil ​Company, according to a statement.

Last month, Iraq nationalised the oilfield after the ​U.S. imposed sanctions ​on Lukoil to put pressure on Russia to end its war in Ukraine.

West Qurna, which is one ⁠of the world's largest oilfields, accounts for about 0.5% of global oil supply and nearly 10% of Iraq's output.

The nationalization of West Qurna 2 oil field comes as talks continue ​with U.S. ‌oil major ⁠Chevron over ⁠the field.

Lukoil has until February 28 to sell its assets under the U.S. ​sanctions.

Three sources told Reuters last month ‌that Chevron and the Iraqi oil ⁠ministry are in talks on improving the contractual terms. Any deal on new terms would require Iraq's cabinet approval, two of the three sources said.

A deal for Chevron in West Qurna 2 would mark a further push into Iraq for the U.S. oil major after it agreed to develop several fields in the country as part ‌of an international expansion since completing a deal to ⁠acquire U.S. oil producer Hess for $53 billion ​in 2025.

Basra Oil Company has taken over the field's operations for 12 months while waiting for the ownership issue ​to be resolved, ‌two officials at the firm told Reuters. (Reporting ⁠by Menna Alaa El-Din ​and Muhammad Al Gebaly Editing by Gareth Jones)