ExxonMobil Reportedly Bids Iraq Farewell, PetroChina Takes the Lead in Mega Oilfield
Portfolio Pulse from Lekha Gupta
Exxon Mobil Corp (XOM) has exited the West Qurna 1 oilfield in Iraq, transferring operations to PetroChina Co., Ltd. (PCCYF), which now becomes the lead contractor. The oilfield produces approximately 550,000 barrels per day and has over 20 billion barrels of estimated recoverable reserves. ExxonMobil's departure marks its exit from Iraq's energy sector, while PetroChina now holds the largest stake in the field. The deal was finalized in a meeting with senior Iraqi oil officials, ExxonMobil, PetroChina, and Basra Oil Co. ExxonMobil's shares are trading higher by 0.85% at $100.83 in premarket.
January 02, 2024 | 12:20 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
PetroChina Co., Ltd. has become the lead contractor of the West Qurna 1 oilfield after ExxonMobil's exit, holding the largest stake in the field.
PetroChina taking over as the lead contractor and holding the largest stake in one of the world's largest oilfields is a significant development. This could be seen as a strategic win for PetroChina, likely to be viewed positively by investors, suggesting a potential short-term uptick in its stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Exxon Mobil Corp has sold its stake in the West Qurna 1 oilfield to PetroChina, marking its exit from the Iraqi energy sector.
ExxonMobil's exit from the West Qurna 1 oilfield is a significant move, but the immediate positive premarket share price suggests a neutral to slightly positive market reaction in the short term. The sale could be viewed as a strategic divestiture, potentially freeing up capital for other ventures or reducing geopolitical risk.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80