• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 1 day Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 1 hour Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 13 hours CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 19 hours NordStream2
  • 5 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 8 hours Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 5 days Modest drop in oil price: SPRs vs US crude inventory build
  • 23 hours "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
  • 5 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 5 days 2019 - Attack on Saudi Oil Facilities.

BP Plans To Spin Off Its Iraqi Oil Assets Into Separate Company

BP is considering spinning off its oil assets in Iraq, including its holding in the world’s third-largest oilfield, into a company separate from the supermajor, which has set its sights on investing more in clean energy in coming years, sources with knowledge of the plan told The Wall Street Journal.

BP is reportedly working on the plan to create the new company together with China National Petroleum Corporation (CNPC), the owner of PetroChina, which is BP’s partner in the field alongside the Iraqi state-owned Basra Oil Company (BOC), according to the Journal’s sources.

If BP spins off its Iraqi operations, this will be highly symbolic of the course the UK major wants to take in the energy transition, considering that the energy giant has been working and investing in Iraq for nearly 100 years.

BP’s presence in Iraq began in Kirkuk in the 1920s when the company that is now known as BP helped Iraq to locate, produce, and export oil from Baba Gurgur, which was the largest oil field in the world at the time.

Rumaila, the third-largest producing field in the world, is estimated to have around 17 billion barrels of recoverable oil remaining, according to BP.

With BP as an operator, the Rumaila oilfield produces 1.5 million barrels per day (bpd) of oil, or around a third of the crude oil pumped in OPEC’s second-largest producer after Saudi Arabia. Oil production at Rumaila has increased by 40 percent since 2010.  

Related: Russia Expands Its Influence In Major Iraqi Oil Fields

According to the Journal’s sources, the spin-off plans for Iraq could be similar to the plans BP has recently announced for its oil operations in Angola.

Last month, BP and Italy’s Eni said they would explore combining their respective Angolan interests into a new self-funded joint venture. The companies have appointed advisors that will support them in raising finance for the new joint venture, BP said.

Spinning off oil assets into self-funded separate entities with their own debts could allow BP and other Big Oil firms to focus on investment in low-carbon energy and technologies, analysts say.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

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