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Saturday, October 16, 2021

Iraq rejects a Chinese offer to buy Exxon Mobil’s stake in West Qurna

The director-general of reservoirs at the Iraqi Ministry of Oil, Muhammad Al-Aboudi, confirmed that the ministry was in talks with American companies to agree to buy Exxon Mobil’s share in one of the country’s largest fields, indicating that it had rejected a Chinese offer for this purpose.

In statements to Al-Sharq, Al-Aboudi said that a Chinese company submitted a request to buy Exxon Mobil’s 32.7% stake in the field, but the Iraqi government refused and demanded a two-month delay before accepting any offer submitted by other Chinese companies.

According to Al-Aboudi, this is due to the Ministry of Oil’s desire that the alternative to the American company is Western or American companies so that dealing with Chinese and Russian companies is not restricted to the field.

He pointed out that the withdrawal of “ExxonMobil” will not in any way affect the work in the field or its production capacity. It is likely that the ministry will buy the company’s share and assign a local company to work in the field.

This announcement comes at a time when Iraq suffers from an economic crisis imposed by the Corona pandemic, and the decisions of the Organization of Petroleum Exporting Countries (OPEC) and its allies, calling for a reduction in oil production.

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