Yahoo Finance ExxonMobil (XOM) Hands Over West Qurna 1 Oilfield to PetroChina
Exxon Mobil Corporation XOM officially concluded its operations in the West Qurna 1 oilfield located in southern Iraq, transferring its responsibilities to PetroChina as the new lead contractor. According to a recent Reuters report, this move marks the completion of ExxonMobil's exit from the project.
The transition of operations was finalized during a meeting held on Monday, where Iraqi oil authorities convened with key executives from ExxonMobil, PetroChina and Basra Oil Company (“BOC”) at the West Qurna 1 oilfield. The handover signifies PetroChina's assumption of the lead role in the field's operations.
PetroChina now holds the largest stake in the West Qurna 1 oilfield following XOM's exit. Last year, Iraq secured a sale agreement to acquire 22.7% of ExxonMobil's stake in West Qurna 1 through the state-run BOC. Additionally, Indonesia's state-owned Pertamina purchased the remaining 10% of XOM’s stake, raising its total share to 20%.
Per the report, the final settlement between Iraq's oil ministry and XOM was recently reached, and deputy oil minister Basim Mohammed emphasized that the deal served the interests of both parties. West Qurna 1, one of the world's largest oilfields with recoverable reserves exceeding 20 billion barrels, currently produces approximately 550,000 barrels per day (bpd) of oil. Iraq and PetroChina have ambitious plans to further boost production at West Qurna 1, targeting 600,000 bpd of oil by the end of 2024, according to the head of BOC.
Following its exit from West Qurna 1, ExxonMobil will no longer have a presence in Iraq's energy sector, as confirmed by BOC officials. However, Mohammed expressed the government's eagerness to involve ExxonMobil in future energy projects, emphasizing the potential for collaboration in the upcoming ventures.
Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
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