Exxon sells Iraq oil stake to PetroChina

[MrOptimistic]

Exxon sells Iraq oil stake to PetroChina 

Feb. 6, 2014

 

Baghdad (AFP) - American energy giant Exxon Mobil on Thursday sold part of its controversial stake in a massive Iraqi oilfield to PetroChina and Indonesia's Pertamina amid a long-running row 

 

http://www.newshour24.com/business/1zcx4j1vik/Exxon-Sells-Iraq-Oil-Stake-Petrochina-Afp.htm

 

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I can't find anymore information on this deal... be nice if someone could help find some more info. Perhaps someone who has a subscription to business information?

 

This is a big deal for Baghdad - Exxon - and PetroChina

Exxon is focusing on Kurdistan now and letting China deal with Baghdad

[moneysoon]

Interesting Play on a couple of fronts!

[MrOptimistic]

yeah, and if you check out the link you'll notice the "full story" link doesn't work.... 
but now go look at the latest post I created about Iraq putting a capital gains tax on international oil companies. -Iraqbusinessnews.com posted it about 5 hours ago

 

seems to add more credibility to the Exxon - PetroChina deal IMO

[thylocene]

Found this link http://online.wsj.com/news/articles/SB10001424052702304017204579225492213548538

 

By 

HASSAN HAFIDH

Updated Nov. 28, 2013 1:48 p.m. ET

Exxon Mobil Corp. XOM -1.17% agreed to sell stakes in its West Qurna-1 oil project in Iraq to PetroChina Co. 601857.SH +0.67% and PT Pertamina (Persero) of Indonesia.

Exxon said Thursday that PetroChina would take a 25% stake in the project and Pertamina would take a 10% stake. The West Qurna-1 field is located near Basra in southern Iraq. It is one of several big fields that Western oil companies agreed in 2010 to help Iraq develop.

After selling the stakes, Exxon will retain 25% of the field and continue as its operator. The rest of the field is owned by Royal Dutch Shell RDSB.LN +0.63% PLC and Iraq's state-owned South Oil Co.

PetroChina's purchase comes as Beijing has become a significant buyer of Iraqi crude, more than doubling its imports from the country since 2009, according to Chinese customs data.

Simon Powell, head of Asian oil-and-gas research at CLSA Asia-Pacific Markets, said the deal could be valued at as much as $5 billion, based on the field's reserves and a contract of at least 10 years.

The West Qurna-1 field by some estimates has the potential to produce nearly three million barrels of crude a day, rivaling some of the world's largest fields. Exxon and Shell are spearheading the $50 billion project, which currently produces 510,000 barrels a day.

Exxon this year gave Baghdad formal notice that the company wanted to sell less than half its stake in the field to PetroChina. Tension developed between Exxon and Baghdad over the company's 2011 decision to help the semiautonomous region of Kurdistan to explore and develop its oil wealth.

Baghdad has warned Exxon to choose between West Qurna-1 and Kurdistan, though more recently Iraq has ratcheted down such rhetoric.

Chinese oil companies have been on a global shopping spree in recent years to meet the country's energy needs. Domestic oil output has slowed in the past decade as China's fields have matured.

PetroChina has said it aimed for overseas production to account for half its business by 2015. PetroChina and its parent, state-owned China National Petroleum Corp., since 2009 have spent $37 billion buying overseas oil-and-gas assets, according to data provider Dealogic.

China's increased activity in Iraq reflects Beijing's willingness to obtain assets in higher-risk locations. Concerns over Chinese energy companies' ties to the Chinese government have limited their ability to obtain new and unconventional oil-and-gas resources in North America.

—Yvonne Lee, Wayne Ma and Brian Spegele contributed to this article.

Write to Hassan Hafidh at hassan.hafidh@wsj.com

Corrections & Amplifications 
Exxon Mobil agreed to sell 25% of its West Qurna-1 stake to PetroChina and 10% to Pertamina, and will retain a 25% stake. An earlier version of this article incorrectly omitted the Pertamina agreement and said Exxon would retain a 35% stake.

[MrOptimistic]

this article says Exxon sold it's stakes Nov. 29, 2013 - idk why my original post was dated as 5 days ago... Now I'm really confused... lol anyway.. IMO the CBI is ready to pull the trigger.. just waiting on the Iraqi Government and the new budget

ExxonMobil Sells Stakes in West Qurna I

Posted on 29 November 2013. Tags: China, Exxon, Exxon Mobil, ExxonMobil, Indonesia, Pertamina, PetroChina, Shell,South Oil Company (SOC), West Qurna

 

By John Lee.

ExxonMobil signed agreements on Thursday withPetroChina for a 25 percent participating interest in the West Qurna I project in Iraq, and with Indonesia’s Pertamina for a 10 percent participating interest in West Qurna I.

ExxonMobil retains 25 percent interest and remains lead contractor.

The transfer has been approved by the South Oil Company,Oil Exploration Company of the Iraqi Ministry of Oil andShell West Qurna B.V., as members of the West Qurna I contractor consortium.

China is already the top foreign player in Iraq’s oilfields.

(Source: ExxonMobil)

Edited February 10, 2014 by MrOptimistic

[sandfly]

THANKS