dispute

Woodside, which is operator of the joint venture, negotiated the deal, which still needs to be agreed to by the other partners.

Under the deal, the partners haven't lost any exploration ground, Woodside said.

"The US$100 million payment is a recognition of the government's desire to get early returns from its oil industry," the spokesman said.

The payment comes after Mauritania disputed previous amendments made to four offshore production contracts operated by the company and avoids the need for arbitration, Woodside said.

"The deal provides both parties with a new equilibrium in the current higher oil price environment," the Woodside spokesman said.

Woodside previously said the dispute won't affect production from the Chinguetti field and is centered on amendments to contracts affecting exploration permits.

Woodside owns about 47% of Chinguetti and Hardman owns 19%. Roc Oil owns roughly 3%, while the Mauritanian government has 12%. The other partners are Premier Oil PLC (PMO.LN) and BG PLC (BG.LN).

Roc Oil has said it is still considering the agreement.