ExxonMobil hands over operations of Iraqi oil field to PetroChina
02 Jan 2024
US oil giant ExxonMobil has exited the West Qurna 1 oilfield in southern Iraq and handed over its operations to PetroChina as the principal contractor, reports citing an Iraqi deputy oil minister said on Monday.
The Iraqi government had, last year, signed a sale agreement to acquire 22.7 per cent of ExxonMobil's stake in West Qurna 1 by state-run Basra Oil Co (BOC) for $350 million.
This left PetroChina as the largest contractor in the West Qurna 1 oil field. As per the agreement signed with Iraqi authorities, ExxonMobil would pay necessary taxes for the sale of shares in the oil field through future negotiations.
The announcement comes after senior Iraq’s oil ministry officials held talks with representatives from ExxonMobil, PetroChina, and Basra Oil Company (BOC) to mark the change of guard.
ExxonMobil had, in November, signed a deal allowing PetroChina to take over as the primary contractor of the oilfield, according to Iraqi officials.
The deal has the full backing of BOC as well as the Iraqi oil ministry, according to reports.
PetroChina will now own the largest share in the oil field. Indonesia’s state-owned oil and gas company, Pertamina, last year, acquired 10 per cent of ExxonMobil’s share, taking its total ownership to 20 per cent.
West Qurna 1, with recoverable reserves of more than 20 billion barrels, currently produces around 550,000 barrels per day (bpd).
The West Qurna field is one of the biggest oil fields in the world with overall recoverable reserves of 43 billion barrels of oil.
Earlier, last month, ExxonMobil gave an update to its corporate plan through 2027 that targets more than doubling earnings potential from 2019 to 2027 with 18 per cent compound annual earnings growth.
The company said it is on track to deliver more than $14 billion of further earnings and cash flow growth potential over the next four years
Simultaneously, ExxonMobil said, it is pursuing more than $20 billion in lower emissions opportunities as part of a strategy to provide the products society needs and to lower emissions.