CAIRO, Feb 17 (Reuters) - 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 ( CVX ) 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 ( CVX ) 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.