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FINANCIAL NEWS
US Exxon plans to sell stake in Iraq’s West Qurna-1 oilfield
30 Mar 2013
(MENAFN) As Exxon Mobil plans to lower its exposure in Iraq’s West Qurna-1 oilfield, the US oil giant is in talks with Abu Dhabi’s Mubadala to sell 5 percent of its stake in the Iraqi oil field to the UAE’s state-run investment fund, reported Arabian Business.
According to Iraqi officials, the move comes as the US firm decided to sell its stake in the southern oilfield in 2012 as it inked oil deals with the autonomous Kurdistan region, which offended Baghdad.
The central government in Baghdad asked Exxon to choose between the oil contracts with Kurdistan and the West Qurna, however, Exxon will remain in West Qurna-1 at least until 2014 as the firm has assigned USD1.65 billion to develop the field in 2013, and at the same time it is moving ahead with its plans to reduce its share in the West Qurna project.
It is worth noting that the negotiations with the UAE company follow discussions with other firms for part of West Qurna.
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