• 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
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days The United States produced more crude oil than any nation, at any time.
  • 11 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 8 days How Far Have We Really Gotten With Alternative Energy
  • 10 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 11 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
Standard Chartered Says Peak Oil Demand Is Not Imminent

Standard Chartered Says Peak Oil Demand Is Not Imminent

Standard Chartered has predicted global…

PetroChina to Develop Giant Iraqi Oil Field with Exxon Mobil

PetroChina, China’s largest energy company, was the first foreign firm to sign oil deals with Baghdad after the US-led invasion to topple Saddam Hussein, and has grown to be the largest foreign major working in Iraq’s oilfields.

It already works as a partner to BP at the Rumaila fields, and holds operations in the Halfaya and al-Ahdab fields, but is now forming a deal to join Exxon Mobil to develop the giant West Qurna 1 field, and potentially buy into a Lukoil project at West Qurna 2; two investments that would make PetroChina the largest foreign investor in Iraqi oil.

A source with intimate knowledge of the deal between the two largest listed energy companies in the world, told Reuters that the agreement between PetroChina and Exxon will be announced in weeks, but refused to offer more details.

Related article: What Happens to Oil Markets if Iraq Collapses?

The West Qurna field has the potential to produce more than 5 million barrels a day, enough to rival the Ghawar field in Saudi Arabia, the world’s largest producing field. In 2009 Baghdad signed a series of contracts with international oil majors in order to boost Iraq’s output to 12 million barrels a day by 2017, enough to make it the largest producing country in the world. Subsequent problems with security and infrastructure have forced that target to be reduced to 9 million barrels a day by 2020, but the West Qurna field still plays a prominent role in achieving that goal.

Exxon holds a 60% stake in the West Qurna 1 field, and along with its minority partner Royal Dutch Shell, has continued to make progress in the $50 billion project. Currently the field produces around 480,000 barrels a day.

Another source told Reuters about a potential deal between PetroChina and Lukoil, the Russian energy company. Last year Statoil, Lukoil’s partner in the West Qurna 2 field, announced that it wanted to sell its 18.75% stake in the project, and Lukoil’s Chief Executive Oifficer, Vagt Alekperov, said that his company would prefer to secure a Chinese firm as their new partner.

Related article: Iran-Iraq-Syria Pipeline Must Tempt Europe

ADVERTISEMENT

The West Qurna 2 field is expected to begin producing this year, with a target output of 500,000 barrels a day in 2014. The project needs an estimated $30 billion investment.

Some industry experts believe that PetroChina will not invest in both projects due to the size of each of them, but Iraq offers the best investment in the world at the moment, especially for a nation keen to secure reserves as its demand continues to grow.

By. Joao Peixe of 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