Iraq Aims to Finalize Exxon Oil Sale by June
(Bloomberg) -- Iraq aims to finalize the sale of Exxon’s stake in the West Qurna-1 oil field by the end of June even after rival U.S. supermajor Chevron Corp. rejected overtures to buy the position.
Basra Oil Co., the state-run company overseeing crude production in the region, may open talks with more companies after Exxon submitted a request to sell its 32.7% stake in January, Director General Khalid Hamza said in an interview. BOC has “no objection” to a Chinese company buying the stake, he said.
Earlier this month, the country’s oil ministry specified it was in talks with U.S. companies about the possibility of them taking Exxon’s position as the field’s operator. China’s oil giants China National Petroleum Corp. and CNOOC Ltd. were considering buying the stake, Bloomberg News reported last year. Such a deal would increase the country’s influence in the field, given that PetroChina already owns 32.7% of it.
“We hoped that Chevron would buy Exxon’s share and be the replacement, but it seems that they didn’t have the desire to be the replacement,” Hamza said.
A Chevron spokesperson declined to comment, while an Exxon spokesperson didn’t immediately respond to a request for comment.
Exxon became lead contractor at West Qurna-1 in 2010 as the country sought to rebuild its oil industry following the Second Gulf War and years of insurgency. But the field’s profitability and attractiveness for future investment has waned in recent years due to tough contractual terms, OPEC production cuts and political instability. One of Exxon’s key priorities is to reduce debt after Covid-19 crushed cash flow last year.
Hamza said Iraq is open to companies from outside of the U.S. buying Exxon’s position.
“We have no objection either on PetroChina nor CNOOC, they are our partners already,” Hamza said. “BOC may buy Exxon’s share, or any of the oil ministry’s companies may buy.”
© 2021 Bloomberg L.P.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- USA Driving Activity to Increase to All-Time Highs
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension