Exxon Mobil exits West Qurna 1 oilfield, replaced by PetroChina
The West Qurna oil field near Basra, in southern Iraq. Photo: AP
Baghdad (IraqiNews.com) – A senior official in the Iraqi oil sector stated on Saturday that Iraq and the US energy company Exxon Mobil signed a settlement deal allowing PetroChina to take over as the primary contractor of the oilfield.
The Deputy Director of Basra Oil Company (BOC), Hassan Mohammed, told Reuters that the Iraqi Oil Ministry and BOC see that PetroChina is the best choice to be the primary contractor of the West Qurna 1 oilfield after evaluating the settlement deal.
After Exxon Mobil leaves the field, PetroChina will own the biggest share.
According to Mohammed, Iraq has also inked a sale agreement that would handle the finances to complete the acquisition of Exxon Mobil’s share in the West Qurna 1 oilfield by BOC.
The agreement includes an assurance to finalize the tax Exxon Mobil should pay for selling its share in the oilfield through future negotiations.
The BOC Deputy Director explained that there are two alternatives if the tax problem is not resolved: either reach a settlement or the matter will go to arbitration.
Pertamina, Indonesia’s state-owned oil and gas company, acquired 10 percent of Exxon Mobil’s share last year, bringing its total ownership to 20 percent, and BOC purchased 22.7 percent of the oilfield.
With 43 billion barrels of recoverable reserves, the West Qurna field is one of the biggest oil fields in the world. The Iraqi government authorized the sale of Exxon Mobil’s share in the oilfield to BOC in 2022 for $350 million.