Iraq closes in pipeline deal with BP & Eni, sets Exxon aside


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Iraq closes in pipeline deal with BP & Eni, sets Exxon aside

Iraq, the oil-rich Western Asian nation with 99.7 percent of its entire revenue coming from crude oil exports, had been closing in to rubberstamping a deal with two oil industry majors, Italian oil and gas company Eni alongside London-based energy company BP, world’s seventh-largest oil industry mogul, widely contemplated as one of “supermajors”, to build an export pipeline, which initially was part of a mega-deal with US-based oil industry major ExxonMobil, at least five senior Iraqi government officials involved in the negotiations had unveiled on Thursday, the 8th of August 2019.

Apart from that, the sources had added in terms of anonymity that under the proposed agreement worth of a lump-sum of $400 million, British oil supermajor BP and Milan-based Eni would be building two seabed pipelines exclusively for heavy to medium grade crude oil aimed at connecting Iraq’s southern part with the Gulf.

In point of fact, the Iraqi-pipeline work had initially been a part of a much-larger project worth of roughly $53 billion, while Exxon seemed to be well-poised to bag the havoc-scale contract earlier this year, however, in context of a number of bureaucratic wrangling alongside security concerns, Exxon was offloaded of the deal, said one of the five Iraqi government officials familiar with the subject-matter.