US major ExxonMobil officially handed over operations at Iraq’s 500,000 b/d-capacity West Qurna-1 field to PetroChina in a 1 January ceremony organized by state Basrah Oil Company (BOC), concluding a contentious exit that took more than two years (MEES, 23 April 2021). Exxon’s 15-year tenure began in 2009 when it was awarded the field during Iraq’s first licensing round (MEES, 30 November 2009). The event begins what the Exxon previously called “an orderly and safe transition to PetroChina,” expected to end by 1H 2024.
Exxon has divested its original 32.7% stake by selling 10% to Indonesia’s Pertamina in February 2023 (MEES, 17 February 2023), then finalizing a deal to sell the remaining 22.7% to BOC in November (MEES, 17 November 2023). Iraq’s cabinet on 26 December approved the $250mn purchase by BOC, with funds to be secured via crude sales by state oil marketer Somo. PetroChina is now the largest partner at the field with a 32.7% stake, followed by BOC 22.7%, Pertamina 20%, Japan’s Itochu 19.6% and Iraq’s state Oil Exploration Co. 5%. The partners have pledged to increase capacity to 800,000 b/d by 2028. (CONTINUED - 171 WORDS)