2021/07/22 18:40 Number of readings 2564 Section: File and Analysis
International companies are no longer enthusiastic to work in the fields of Iraq .. and the Minister of Oil is sounding the alarm
Baghdad / Obelisk: The CEO of the Russian Lukoil Company, Waheed Ali Kabirov, said Thursday, July 22, 2021, that the company may reduce its share in the Iraqi West Qurna 2 oil project, while Ihsan Abdul-Jabbar, the Iraqi Minister of Oil, described the climate on Sunday, July 4, 2021.
Investing in his country is considered unfavorable to retaining large investors.
And the head of the company, Vagit Alekperov, said, in response to a question about the company’s plans to sell a stake in the West Qurna 2 project: We have notified Iraq to sell part of our share, there are interested, I will not talk about the stake, so far the Iraqi Oil Ministry has refused because they are satisfied with the company’s work in Iraq
Therefore, we are continuing the negotiation processes to improve the economy in (West Qurna 2), especially in the Yamama reservoir, according to what was reported by Reuters.
The Oil Minister said that BP was considering the idea of withdrawing from his country, and that the Russian Lukoil Company had sent an official notice revealing its desire to sell its stake in the West Qurna-2 field to Chinese companies, according to Reuters.
He went on to say that the investment environment in Iraq is not suitable for maintaining large investors.
He pointed out that each investor is either looking for another market or looking for another partner.
Sources in the ministry stated that these statements were made by the minister during a parliamentary session on June 29.
Last April, the US company ExxonMobil offered its 32.7% stake in the West Qurna oil field in Iraq for sale to reduce the mountain of accumulated debts.
A Chinese company submitted a request to buy ExxonMobil's share in the field, but the Iraqi government refused, and demanded to wait for two months before accepting any offer submitted by other Chinese companies.
This is due to the Oil Ministry's desire that the alternative to the American company be Western or American companies, so that dealing with Chinese and Russian companies is not limited to the field.
A source in the Iraqi Oil Ministry attributed the company's desire to withdraw from work in Iraq, to the Corona pandemic, and the low demand for oil in the world, in addition to the fact that oil contracts in Iraq are difficult, and their profits are few, compared to other neighboring countries.
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