• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 3 hours 5 Tweets That Change The World?
  • 13 hours The power of propaganda has no boundaries: Which country has larger territory US od China
  • 7 hours Freedom of Speech for Dummies
  • 2 hours Boring! See Ya Clowns, And Have Fun In Germany
  • 2 hours Bloomberg: shale slowing. Third wave of shale coming.
  • 6 hours The Mysterious Iranian Tanker
  • 16 hours South Korea Unveils Fighter Jet Mock-Up Amid Program Challenges
  • 19 hours Iranian Oil Tanker struck by missiles off Jeddah
  • 13 hours How The US Quietly Lost The 1st Amendment
  • 18 hours National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 8 hours Climate Protesters Blocking Roads etc...
  • 14 hours Crazy Stories From Round The World
Alt Text

Oil Prices Fall After Misleading Trade War Rumors

Oil prices fell significantly on…

Alt Text

Greed Or Incompetence: What’s Behind The California Power Cuts?

California’s electricity shutoffs are highlighting…

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

The Revival Of A $53 Billion Megaproject

The Iraqi government is still in talks with Exxon about a megadeal worth US$53 billion over three decades, Iraqi media reported, quoting the Oil Ministry of the country. The deal could bring in some US$400 billion into Baghdad’s coffers over its lifetime.

The deal, involving PetroChina as partner of Exxon, has been in the making for four years and will involve the development of two oil fields in southern Iraq—Nahr Bin Umar and Artawi—and the construction of water supply infrastructure to southern fields in order to keep their production steady.

As a result of the project, the combined production of Nahr Bin Umar and Artawi should hit half a million barrels of oil daily, up from 125,000 bpd as of May this year. The two fields could also yield some 100 million cu ft of natural gas once the project is implemented.

Yet two months ago reports surfaced that the deal was under threat. Contractual disagreements and a worsening security situation in the country were among the reasons for the troubles.

Reuters quoted unnamed sources close to the developments as saying the bone of contention was the manner in which Exxon wanted to be compensated for the investments and the work. The supermajor apparently wanted a production-sharing stipulation, which Baghdad opposed on the grounds that it would be at odds with its rule to keep oil production state-owned.

Now, the Iraqi Oil Ministry’s statement made a note of saying that the delay in finalizing the deal did not mean it had fallen through or that Exxon has been excluded from the race.

Iraq has made no secret of its oil production ambitions despite the OPEC-wide cuts aimed at keeping prices relatively high. The country produces less than 5 million bpd at present but hopes, with the help of the megaproject, to boost this to 6.5 million bpd by 2022.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play