Exxon tells Iraq it wants to sell part of oilfield stake to PetroChina


ExxonMobil (XOM) has given Iraq's government formal notice it wants to sell part of its 60% stake in the West Qurna-1 oilfield to PetroChina (PTR), WSJ reports.

The request, subject to review by Iraq's cabinet, comes amid government anger over XOM's separate exploration deals with semi-autonomous Kurdistan in northern Iraq.

XOM and partner Royal Dutch Shell (RDS.A, RDS.B) have made progress in developing the $50B project; West Qurna-1 now produces 510K bbl/day and could hit 600K by the end of this year.

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Comments (4)
  • Larry Smith
    , contributor
    Comments (3180) | Send Message
     
    Iraq paying pennies for each barrel, the Kurds offering a much better deal.
    14 Aug 2013, 06:24 PM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (11143) | Send Message
     
    Yes! A great first step for Exxon to "Break it Up & Slim It Down":

     

    http://seekingalpha.co...
    14 Aug 2013, 07:40 PM Reply Like
  • Mike Walker
    , contributor
    Comments (390) | Send Message
     
    I saw your article but didnt have a chance to comment.

     

    Actually I think there is a far better chance for XOM, CVX, RDS to 'bulk it up' rather than 'slim it down' via acquisitions.

     

    TOT will buy ENI

     

    RDS needs to do something significant, or risk being acquired themselves. COP may fit the bill.

     

    XOM/CVX will start looking at the largest independents to acquire as they are unable to grow production via the drill bit - along the lines of an APC, EOG, NBL, APA, PXD or KOS.
    15 Aug 2013, 05:11 AM Reply Like
  • User 353732
    , contributor
    Comments (5161) | Send Message
     
    The capital requirements of the project are so large that they even exceed XOM's risk appetite and resources.
    There are more opportunities for XOM today than organizational capacity and cash flow.

     

    The Iraqi's want the field to be developed much faster than XOM does so selling down makes sense for XOM and bringing in a partner with a lot of money and huge market for oil makes sense for both Iraq and PetroChina
    15 Aug 2013, 06:25 AM Reply Like
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