The National Oil Company begins an agreement with contractors regarding exploration in regional waters
Economie Today, 13:05
Basra - INA - Saad Al-Sammak
confirmed, today, Sunday, that the National Oil Company provided support for the implementation of a plan to explore oil and gas in the territorial waters of Iraq, while noting that it was initiated in coordination with contractors with experience in offshore drilling operations.
The director of the Basra Oil Company, Khaled Hamza, said in a statement to Al-Sabah newspaper, which was followed to the Iraqi News Agency (INA): "A plan to support exploration efforts in our territorial waters has been approved to implement projects to invest hydrocarbon wealth in marine areas," stressing,
"It was initiated in coordination with subcontractors." They have experience in offshore drilling.
Regarding the production capacity of the Basra Company, Hamza explained, "It reached more than 3 million barrels per day, while the export rate reached 3 million and 250 thousand barrels per day through the Basra oil ports, adding that
the export rate is subject to the extent to which it is affected by weather fluctuations in the northern Arabian Gulf."
He pointed out that Iraq's commitment to the decisions of "OPEC Plus" was an actual contribution to support the organization in determining the future of prices and their stability in the global oil market, noting that Basra oil has available energy that can be used as an effective reserve for Iraq to restore balance to oil markets and maximize oil revenues to support the country's general budget.
And regarding the negotiations to acquire ExxonMobil’s share in the West Qurna 1 field, the Deputy Director General of the Basra Oil Company, Ahmed Dehim said:
The partial withdrawal of the two companies (Petrogiana and Petro Mina) from a preliminary agreement to buy the share of their largest partner Exxon Mobil is consistent with the content of the Cabinet’s decision to fully acquire the ExxonMobil's share in West Qurna 1 field, noting that
he informed the two companies, during recent negotiations between the two parties, of the need to withdraw any compensation.
At the same time, Dahim confirmed that Iraq advised ExxonMobil to abandon the international arbitration case in exchange for continuing the purchase negotiations that guarantee the rights of both parties, pointing out that the matter is still pending, adding that the negotiations are taking place in the right way.
It is noteworthy that the Council of Ministers agreed, in its session held on January 5, 2022, for the National Oil Company to acquire ExxonMobil’s share in West Qurna 1 field, which was offered by the American company, the main operator of the field, for up to 350 million dollars, and to enter into sale negotiations with its Chinese partners and to sign the Minutes of a preliminary agreement, which Iraq rejected for violating oil licensing rounds contracts.