• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 3 days By Kellen McGovern Jones - "BlackRock Behind New TX-LA Offshore Wind Farm"
  • 10 days Natron Energy Achieves First-Ever Commercial-Scale Production of Sodium-Ion Batteries in the U.S.
  • 10 days Bad news for e-cars keeps coming
  • 9 days The United States produced more crude oil than any nation, at any time.
  • 12 days RUSSIA - Turkey & India Stop Buying Russian Oil as USA Increases Crackdown on Sanctions
Sanctions Strand Over 50 Russian Oil Tankers

Sanctions Strand Over 50 Russian Oil Tankers

More than 50 oil tankers…

China's Crude Oil Imports Slump 11% in June

China's Crude Oil Imports Slump 11% in June

China's crude oil imports declined…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Iraq Wants Other U.S. Oil Company To Replace Exxon

West Qurna

Iraq wants another U.S. company to replace Exxon as a shareholder in the West Qurna 1 field, one of the country's largest after the supermajor leaves the country.

"Exxon Mobil is considering exiting Iraq for reasons that are to do with its internal management practices, decisions, and not because of the particular situation in Iraq," Prime Minister Mustafa al-Kadhimi told media after a meeting with President Joe Biden, as quoted by Reuters.

Exxon, which holds a $32.7-percent interest in West Qurna 1, has been looking for a buyer with plans to exit the country entirely. The stake was valued last year at up to $500 million. At the time, reports said two Chinese companies were interested in acquiring it, state-owned CNPC and CNOOC.

The plans for the stake sale appear to have been prompted by the impact the pandemic had on Exxon's finances as it sought to keep its dividend intact and reduce debt. Later reports said that Iraq could end up buying the West Qurna 1 stake itself.

There could be other reasons for Exxon leaving Iraq, too. As Gerald Jansen wrote for Oilprice earlier this month, these have to do with the souring relationship between the company and Baghdad after Exxon ventured into Kurdistan oil, and with the continued political and financial instability in Iraq. This, according to Jansen, may have compromised the profitability of whatever plans Exxon may have had for its Iraqi business earlier.

Just two years ago, Exxon was all set to take part in a $53-billion plan to boost Iraq's oil production, but it seems the pandemic and the Iraqi situation changed many things, including this ambitious plan.

"When Exxon Mobil departs, we will not accept its replacement to be other than another American company," Prime Minister Kadhimi told media this week, but an American company has yet to express interest in acquiring Exxon's holdings in Iraq.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on July 27 2021 said:
    It is far better for Iraq’s long-term interests to buy ExxonMobil’s share in West Qurna 1 oilfield and then ask a Chinese company to run the giant field. China’s CNPC is already successfully operating the giant Rumaila oilfield and could easily manage the nearby West Qurna oilfield. Furthermore, China is the biggest investor in Iraq’s oil industry.

    Iraqi Prime Minister Mustafa Al-Khadimi’ telling American media that he wants another American company to replace ExxonMobil as a shareholder in West Qurna is no more than sweet talk while he is in Washington DC to sooth America’s feelings about the growing Chinese influence of in Iraq. He knows full well that he will end up asking a Chinese oil company to take over if he wants Iraq to lift its crude oil production to 7 million barrels a day (mbd) by 2027.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News