In a 17 February decision, the Iraqi government agreed to pursue a settlement with Lukoil at its 480,000 b/d-capacity West Qurna-2 (WQ-2) oilfield. The private Russian company submitted a settlement and assignment proposal last week to transfer its 75% stake to state firm Basrah Oil Company (BOC) and recoup unpaid dues while settling outstanding debts and tax disputes at the giant oil field (MEES, 13 February).
The decision did not disclose a settlement figure and was instead a preliminary move that empowers the oil ministry with a legal mandate to begin negotiations. In total Lukoil proposed a sum of less than $445mn, a figure less than the total of what it is owed by Iraq, although Baghdad also has substantial tax claims against the company. (CONTINUED - 287 WORDS)