Pertamina Buy Shares of Exxon fields in Iraq

Pertamina Buy Shares of Exxon fields in Iraq

 Exxon Mobil Corp. . has agreed to sell a majority stake West Qurna - 1 project in Iraq to PetroChina Co. . and PT Pertamina .

Thursday , Exxon said PetroChina will buy a 25 % stake in the project and Pertamina will take a 10 % stake . West Qurna - 1 field is located near Basra in southern Iraq , and is one of several fields in Iraq are getting help Western companies in terms of management .

After selling the stock , Exxon will retain 25 % of the existing fields , as well as those who operate it applies . The rest of the fields owned by Royal Dutch Shell PLC and South Oil Co. . belonging to the Iraqi government .

Purchase PetroChina appears when Beijing became the main buyer of crude oil of Iraq . China's oil imports from Iraq more than doubled since 2009 , according to Chinese government data .

Simon Powell , head of Asian oil and gas research at CLSA Asia - Pacific Markets said the deal could be worth up to $ 5 billion . The value was based on the supply of oil in the field as well as at least a 10 -year contract .

West Qurna - 1 field predicted chance of producing nearly three million barrels of crude oil . With that number , West Qurna - 1 is able to compete with the world's biggest fields . Exxon and Shell led projects worth $ 50 billion, which is currently producing 510,000 barrels per day .

Exxon this year provide an official letter to Baghdad , stated that the company wants to sell the shares at less than half the field to PetroChina . Tensions had occurred between Exxon and Baghdad in 2011 when Exxon decided to help the Kurdistan to explore and develop oil wealth in the region have limited autonomy .
Baghdad warned Exxon to choose one , West Qurna - 1 or Kurdistan . However , the recent threat has subsided .
Chinese oil companies have shopped globally in recent years to meet domestic energy needs . Quota domestic oil slowed in the past decade because many Chinese oil fields mature .

PetroChina said would target overseas production to contribute half of the business in 2015 . PetroChina and its parent company , China National Petroleum Corp. . spent $ 37 billion since 2009 . According to data from Dealogic , the money was used to buy foreign oil and gas assets . ( WSJ )