Halliburton and Exxon to buy a stake from West Qurna-1 oil field in Iraq

Halliburton resurfaced as a probable purchaser of the 32.7% stake in West Qurna-1, one of the globe’s most colossal oil fields, over a month ago

Halliburton and Exxon to buy a stake from West Qurna-1 oil field in Iraq

Halliburton and Exxon to buy a stake from West Qurna-1 oil field in Iraq

Halliburton Company and Exxon Mobil Corporation are in conversations over the latter’s effort to retail a stake in the West Qurna-1 oil field in southern Iraq, as per the country’s Energy Minister.

Halliburton and Exxon to acquire a stake in Iraq Oil Field

Iraq requires an American partner for Exxon’s stake, Oil Minister Ihsan Abdul Jabbar, stated reporters in Baghdad. If the discussions with Halliburton fail, Iraq will go ahead and purchase the stake, he said. He said several days ago that Iraqi state firm Basra Oil Company could be a possible purchaser.

Halliburton, which chiefly provides oil-field services, has earlier stated that it is imprecise that the firm is involved in purchasing Exxon’s holding.

Ihsan Abdul Jabbar stated that Basra Oil wants to take over the Exxon stake, but to uphold the stability of partners and market, they underpin a US partner.

The minister stated that he estimated OPEC+ to enhance production by 400,000 barrels in January 2022. He stated that the birth of the omicron coronavirus variant hasn’t had a grave impact on global oil demand.

The 23-nation cluster, led by Russia and Saudi Arabia, decided in early December to enhance output in January 2022 by that amount. However, it upheld its meeting ‘in session,’ translating that the collaboration can transform its strategy swiftly if oil-market conditions depreciate.

Exxon Mobil’s Exodus

Halliburton resurfaced as a probable purchaser of the 32.7% stake in West Qurna-1, one of the globe’s most colossal oil fields, over a month ago.

Exxon was amongst the foremost Western oil voyagers permitted Iraq in 2010 as the Middle Eastern country strived to refabricate its energy sector post the fall of Saddam Hussein and years of clashes. Preceding that, Iraq’s crude abundance had been vastly off-limits to outsiders for approximately four decades.

Exxon more recently explored West Qurna amidst challenging predetermined terms, OPEC supply restrictions, and prevalent political instability. Iraq is the cartel’s most humongous producer after Saudi Arabia.

Whilst Halliburton has long been one of Exxon’s chief contractors in the field, facilitating an obvious possession stake would be a rare endeavour for a firm concentrated on fracking, mapping, and rehabilitating assets possessed by other firms. West Qurna-1 is a 20-billion-barrel bond.

Abdul Jabbar also stated his ministry is in talks with Chevron Corporation on the economic blueprint of the agreement for its potential investment in Nasiriya. He is estimated to authenticate a contract with the American company in Q1 of 2022.

The Iraqi National Oil Company would be Chevron’s collaborator in the oil exploration investment with a 40% stake in the venture. The American oil mogul will facilitate exploration endeavours in the city, with an appraised daily output of 600,000 barrels for at least a decade, the minister stated.

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