{"id":8670,"date":"2023-11-13T13:31:04","date_gmt":"2023-11-13T13:31:04","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=8670"},"modified":"2023-11-13T13:31:04","modified_gmt":"2023-11-13T13:31:04","slug":"iraq-petrochina-to-replace-exxon-as-lead-contractor-for-west-qurna-1-oilfield","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/8670\/","title":{"rendered":"Iraq: PetroChina to replace Exxon as lead contractor for West Qurna 1 oilfield"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0China\u2019s state-owned oil and gas company, PetroChina is to replace US energy giant Exxon Mobil Corp as the lead contractor for Iraq\u2019s\u00a0West Qurna 1 oilfield, following a settlement agreement, whereby the latter will finalise its exit from the oilfield, according to a senior Iraqi oil executive.<\/p>\n

Yesterday\u00a0Reuters<\/i><\/a>\u00a0quoted the deputy manager of Basra Oil Co., Hassan Mohammed as saying: \u201cWe studied the settlement agreement and the oil ministry with the Basra Oil Company believe that the best option is for Petrochina to become the lead contractor of West Qurna 1.\u201d<\/p>\n

The Iraqi government has also signed a \u201csale agreement\u201d arranging the financial issues to finalise the process of acquiring Exxon Mobil Corp\u2019s stake in West Qurna 1 oilfield by state-run Basra Oil Co., said Mohammed. The sale agreement includes a commitment to resolve the tax value that Exxon must pay for selling its stake in the field, he added.<\/p>\n

\u201cTax issue is not resolved yet and according to the sale agreement we have two options, either to reach a tax settlement or we resort to arbitration,\u201d the executive said.<\/p>\n

The news agency reported that two oil managers at the West Qurna 1 field confirmed the details of the settlement and sale agreement signed with Exxon.<\/p>\n

Following Exxon\u2019s exit from the oilfield \u2013 which is one of the world\u2019s largest, the company will no longer have a presence in Iraq\u2019s energy sector.<\/p>\n

Earlier this year,\u00a0Oil Price<\/a>\u00a0reported that although PetroChina bought a 32.7 per cent stake in the field at around the same time as Exxon took its identically-sized stake in the field, \u201cChina has long been the dominant partner in West Qurna 1.\u201d<\/p>\n

\u201cThis was achieved by dint of several under-the-radar deals that on paper were for \u2018contract-only\u2019 work related to various anodyne-sounding projects but together established total control for China over the field, at ExxonMobil\u2019s expense.\u201d<\/p>\n

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