Iraq close to inking $53bn deal with Exxon, PetroChina

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Iraq close to inking $53bn deal with Exxon, PetroChina

On Tuesday, the 7th of May 2019, the Iraqi Prime Minister, Adel Abdul Mahdi said that Baghdad had been closing in to rubberstamp a $53 billion, 30-year energy agreement with PetroChina and Exxon Mobil, two of the leading oil miners across the world, while the Iraqi PM had also denied any link between a US permission to conduct business with Iraq and the mega-project.

According to the Iraqi Prime Minister, Baghdad had been expecting to make around $400 million over 30 years following the implementation of the deal. Besides, Abdul Mahdi had also added that the mega-project would be involving a through-and-through development of the Artawi and Nahr Bin Umar oilfields and a raise of production from the two oil fields to at least 5,00,000 barrels per day from present 1,25,000 barrels per day.

Announcement of the latest deal was brought into light, after Iran’s envoy on London had been quoted saying yesterday (May 6th) that the Unite States had offered waiver to Iraq to connect with Iran economically in exchange for an oil deal with Washington.

While being asked about the latest progress over the talks with PetroChina and Exxon Mobil, Iraqi PM said to the reporters on Tuesday (May 7th), “Talks now between the oil ministry and Exxon Mobil and PetroChina are focused on how to split profits if oil prices rise or decline”.