The company and the government have reached an in-principle agreement to amend supplementary agreements to PSCS Area A, Area B, Area C Block 2 and Area C Block 6, Woodside said.

It is understood that the joint venture will pay $US100 million ($A140 million) to the goverment to settle the dispute.

While the dispute does not affect the Chinguetti oil field, it does involve revenue shares from the Tiof, Tevet and Banda discoveries.

Mauritanian partner Hardman Resources said the amendments would be negotiated in due course and override previous supplementary agreements.

“Importantly, the exploration periods under the PSCs are upheld in accordance with all previous agreements,” Hardman said.

The new agreement is subject to unanimous consent from all the joint venture partners, which also includes Australia’s Roc Oil and other international companies.

Woodside chief executive Don Voelte said the agreement laid the foundation for good relations between the company and the Mauritanian Government.

“The Mauritanian Government has worked constructively with Woodside to resolve differences between the parties,” he said.

“We are happy with this agreement and look forward to building a productive and cooperative relationship with the Mauritanian Government.”