Oil giant Exxon interested in buying Lukoil's stake in West Qurna-2 field: Iraq confirms talks – Reuters
Kyiv • UNN
Exxon Mobil is in talks with Iraq to acquire Lukoil's controlling stake in the West Qurna-2 field. This field accounts for 9% of Iraq's oil production, and potential buyers can negotiate until December 13.
American Exxon Mobil is holding private negotiations with Iraq regarding a possible acquisition of a controlling stake in Lukoil in one of the largest oil fields on the planet – West Qurna-2, five Iraqi government sources told Reuters, UNN writes.
Details
According to the agency's interlocutors, Exxon approached the Iraqi Ministry of Oil, stating its official interest in the assets of the Russian company, which is trying to urgently get rid of international projects after the introduction of US sanctions. If the deal is successful, it will be Exxon's largest return to Iraq in the last decade.
"Lukoil" owns a 75% operating stake in West Qurna-2 – a field with a daily production of about 470 thousand barrels, which provides 9% of all oil production in Iraq and almost half a percent of global supplies. Due to the suspension of Iraqi payments, the Russian company declared force majeure on the project, which accelerated the search for a buyer.
Banking estimates put the estimated market value of the asset at $1.6 billion. Under the current US Treasury Department license, potential buyers, including Exxon and Chevron, can negotiate with Lukoil until December 13, but a separate approval from Washington is required to conclude the deal.
Iraqi officials emphasize that Exxon is considered a priority buyer.
The company has the capacity and experience to manage such a large and complex field
Exxon's return to the country is already underway: in October, the company signed an unofficial memorandum on participation in the development of the Majnoon field and support for oil exports. Against this background, Baghdad is trying to attract leading global players, offering more favorable conditions for extraction projects.