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Iraq to buy ExxonMobil’s share in giant oil field for 300 million USD
According to Attaqa news, Iraq plans to set aside $300 million in its upcoming budget to purchase ExxonMobil’s stake in the West Qurna 1 oil field.
Prior to 2022, the Iraqi government gave its approval for the Iraq National Oil Company (INOC) to buy the American company’s stake in the West Qurna field, one of the nation’s largest oil fields.
According to the Al Sabaah daily, the allocation of $300 million USD was indicated by the Iraqi Oil Minister, Ihsan Abdul Jabbar, in the next budget.
The official request to buy ExxonMobil’s stake in the West Qurna 1 field, which contains more than 20 billion barrels of oil reserves, was made by the Iraqi Ministry of Oil in May 2021.
Abdul Jabbar claimed that the negotiations with the ExxonMobil partners took more than 90 days, and he added that INOC will pay 300 million USD to acquire the share.
According to the economic feasibility report submitted to the Ministry of Finance, the cash will be recovered by production and export revenues in just two years, according to the Iraqi Oil Minister.
As part of its strategy to concentrate on the most cost-effective assets, particularly in the Americas, the American corporation declared last year that it intended to withdraw from the Iraqi market and sell its stake in the oil field.
ExxonMobil notified Iraq in April 2021 that it intended to sell its 32.7 percent stake to China National Offshore Oil Corporation (CNOOC), but Baghdad rejected the offer.