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Iraq approves agreement with Lukoil to cede operations at West Qurna-2 to local company

In early January, Iraqi authorities announced the transfer, stating it was occurring "in accordance with the provisions of the service and development contract"

RABAT, February 18. /TASS/. The Iraqi government has approved an agreement to transfer oil production operations at the West Qurna-2 field, where Lukoil holds a management stake, to the local Basra Oil Company, Prime Minister Mohammed Shia al-Sudani’s office announced.

"Regarding the management of oil fields, the cabinet approved a peaceful settlement of issues with the Lukoil company concerning the transfer of oil production operations at the West Qurna-2 field to the Basra Oil Company," the statement said.

The document specifies that this includes "invoices and the hiring of foreign personnel, confirmed by an external audit," and income tax on foreign specialists' salaries.

In early January, Iraqi authorities announced the transfer, stating it was occurring "in accordance with the provisions of the service and development contract."

Last October, the US and UK added Lukoil to their sanctions lists, after which the Russian company announced that it intended to sell its international assets, and that it had received an offer from international oil trader Gunvor to acquire Lukoil International GmbH, which owns the Russian company’s foreign assets. However, Gunvor later said that it was withdrawing its offer to purchase Lukoil’s foreign assets following a statement from the US Department of the Treasury that the agency did not intend to issue Gunvor a license to conduct business and make a profit until the conflict in Ukraine was over.

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