Page 4 - MEOG Week 45 2021

MEOG COMMENTARY MEOG

Qurna bid details emerge as

INOC makes Chevron progress

Iraq appears to have found its American replacement for ExxonMobil at West Qurna-1,
while talks are progressing with Chevron for a swathe of southern exploration acreage.

IRAQ LAST week, we carried reports that US services numerous parties since ExxonMobil announced
specialist Halliburton had expressed its interest its intention to withdraw from the project early
in replacing fellow US firm ExxonMobil in the this year. The US firm had apparently been in
WHAT: contract to develop the West Qurna-1 (WQ-1) talks with state-owned China National Petro-
Halliburton and Wood oilfield. Details have now emerged about Hal- leum Corp. (CNPC) and China National
Group have bid to take liburton’s plans, with reports suggesting that it Offshore Oil Co. (CNOOC) for the sale of its
over from ExxonMobil, has submitted a bid to take over operatorship of operated 32.7% stake in WQ-1. This was turned
with financial backing the field. down by BOC, with a source close to proceed-
to be provided by Twelve Meanwhile, following months of Iraqi efforts ings telling Middle East Oil & Gas (MEOG) that
Seas Investment. to woo fellow US major Chevron, talks appear to the Iraqi government did not want the coun-
be progressing on a major oilfield contract which try’s upstream to be “dominated by Chinese
WHY: may be expanded to cover gas, solar and water companies”.
The technical services injection. The company has divested nearly half of its
contract for West Qurna-1 original 60% and is partnered by China’s Pet-
has another nine years Qurna bid roChina (32.7%), Japan’s Itochu (19.6%), Per-
to run, with Exxon’s On November 4, Iraq Oil Report quoted a let- tamina (10%) and state-owned Basra Oil Co
share valued at around ter sent to Iraqi Oil Minister Ihsan Abdul Jab- (BOC, 5%). The company promised to divest
$350mn. bar which outlined plans for Halliburton and $15bn worth of assets during 2019-2021, but
the UK’s Wood Group to operate the field with only sold off $1bn worth of assets in 2020. Earlier
WHAT NEXT: financial backing from US investment firm this year it sold its 32% stake in the 324-square
Baghdad also appears set Twelve Seas Investment Co. km Baeshiqa licence in Iraqi Kurdistan to Nor-
to land another US major, The letter, which was signed by Twelve Seas’ way’s DNO.
with Chevron said to be CEO Dimitri Elkin and CFO Jonathan Morris, WQ-1 has capacity to produce 500,000 bar-
in advanced talks for said: “The acquisition and future proportional rels per day (bpd) of oil from remaining com-
exploration acreage in the development of the field will be completely bined oil and condensate reserves of more than
Dhi Qar Governorate. funded by Twelve Seas and operationally man- 22bn barrels in the northern portion of the
aged by Halliburton.” broader West Qurna deposit.
Baghdad has been holding talks with The developers are paid a maximum of just

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