Exxon Mobil exits West Qurna 1 oilfield, replaced by PetroChina

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Exxon Mobil exits West Qurna 1 oilfield, replaced by PetroChina

A senior official in the Iraqi oil sector announced on Saturday that Iraq had signed a settlement deal with Exxon Mobil, allowing PetroChina to become the main contractor of an oilfield.

According to Hassan Mohammed, the Deputy Director of Basra Oil Company (BOC), the Iraqi Oil Ministry and BOC have concluded that PetroChina is the most suitable candidate to be the main contractor for the West Qurna 1 oilfield. This decision was reached after evaluating the settlement deal.

Once Exxon Mobil departs from the field, PetroChina will hold the majority stake.

BOC has signed an agreement to acquire Exxon Mobil’s share in the West Qurna 1 oilfield with financial assistance from Iraq, according to Mohammed.

The agreement includes a commitment to negotiate the tax amount Exxon Mobil owes for its share in the oilfield.

The Deputy Director of the BOC stated that if the tax issue is not resolved, there are two options: either come to a settlement, or the matter will proceed to arbitration.

Pertamina, Indonesia’s state-owned oil and gas company acquired 20% of Exxon Mobil’s shares, while BOC purchased 22.7% of the oilfield.

The West Qurna field is among the largest oil fields globally, with recoverable reserves of 43 billion barrels. In 2022, the Iraqi government approved the sale of Exxon Mobil’s stake in the oilfield to BOC for $350 million.