Iraq to buy ExxonMobil’s share in giant oil field for 300 million USD
West Qurna 1 oil field. Photo: Middle East Online
Baghdad (IraqiNews.com) – Iraq intends to allocate 300 million USD in its next budget to buy ExxonMobil’s share in the West Qurna 1 oil field, according to Attaqa news.
Earlier in 2022, the Iraqi cabinet approved the acquisition by the Iraq National Oil Company (INOC) of the American company’s share in the West Qurna field which is considered one of the giant oil fields in the country.
The Iraqi Oil Minister, Ihsan Abdul Jabbar, mentioned that the allocation of 300 million USD was included in the upcoming budget, according to Al Sabaah newspaper.
In May 2021, the Iraqi Ministry of Oil officially requested the purchase of ExxonMobil’s share in the West Qurna 1 field which has oil reserves of more than 20 billion barrels.
Abdul Jabbar said that discussions about the deal with ExxonMobil partners lasted for more than 90 days, and explained that INOC would buy the share for 300 million USD.
The Iraqi Oil Minister indicated that the amount, according to the economic feasibility presented to the Ministry of Finance, will be recovered within only two years through profits of production and exports.
The American company announced last year its intention to exit the Iraqi market and liquidate its share in the oil field as part of its strategy to focus on the most cost-effective assets, especially in the Americas.
In April 2021, ExxonMobil informed Iraq about its intention to sell its 32.7 percent share to China National Offshore Oil Corporation (CNOOC), which was rejected by Baghdad.