PetroChina to acquire ExxonMobil’s stake in Iraq’s West Qurna 1 oil field

(WO) – According to Reuters, PetroChina will become the lead contractor for Iraq’s West Qurna 1 oil field, following an exit agreement between the country and U.S. energy company Exxon Mobil Corp. Once ExxonMobil’s departure is official, PetroChina will become the oil field’s largest stakeholder.

Additionally, Iraq and ExxonMobil have arranged a “sale agreement” to process state-run Basra Oil Co.’s acquisition of Exxon’s interest in the West Qurna 1 oil field.

While neither ExxonMobil nor PetroChina were available for comments, Reuters reported that two managers from the oil field confirmed the details of the transaction. Once Exxon’s exit is complete, the company will no longer have a presence in Iraq’s oil and gas industry.

West Qurna 1 is located in southern Iraq and has recoverable reserve estimates of over 20 Bbbl, Reuters reported, making the oil field on of the largest in the world. Reuters cited familiar field officials that say West Qurna 1 produces 560,000 bpd.

This story was originally reported by Reuters.