Firms first bid for scheme in June 2009
A consortium of the US’ ExxonMobil and the UK/Dutch Shell Group has finalised a deal to take on the first-phase development of the West Qurna oil field in southern Iraq.
The companies signed a deal to develop the field with Iraq’s Oil Ministry on 25 January, after a series of negotiations which started in June 2009 and ended in November (MEED 5:11:09).
The deal was not signed until January because it needed to be ratified by the country’s parliament.
Under the terms of the 20-year deal, the consortium must boost production at the southern part of the field from current levels of around 280,000 barrels a day (b/d) to 2.33 million b/d.
They will receive $1.90 for every barrel of oil they produce over an agreed minimum. Exxon leads the consortium with an 80 per cent stake, while Shell holds the remaining 20 per cent.
It is the first deal to be signed with a US-led consortium since the 2003 invasion of Iraq.
A consortium of Russia’s Lukoil and Norway’s Statoil signed an agreement to complete the second phase of the West Qurna development in December (MEED 13:12:09).
They agreed to raise output at the northern half of the field to1.8 million b/d for a fee of $1.15 for every barrel produced above an agreed level of 120,000 b/d.
Lukoil leads the consortium with an 85 per cent stake and will operate the field.
You might also like...
McDermott completes financial restructuring exercise
28 March 2024
Region heads for hotel boom
28 March 2024
Lowest bidders emerge for Kuwait housing project
28 March 2024
Redcon wins Red Sea Triple Bay infrastructure deal
28 March 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.