Iraqi Oil Minister expresses disappointment over ExxonMobil’s departure from West Qurna 1 oilfield
Iraq’s Oil Minister, Hayan Abdel Ghani, has voiced disappointment regarding ExxonMobil’s decision to withdraw from the West Qurna 1 oilfield in Iraq at the onset of 2024. The Ministry of Oil asserts that instead of maintaining operations in Iraq, ExxonMobil intends to shift its focus towards exploring potential investment opportunities in African nations.
Abdel Ghani disclosed that despite Baghdad’s directive for ExxonMobil to continue its operations in the West Qurna 1 oilfield situated in southern Iraq, the oil giant opted for a different course of action. This decision, according to the Minister, was communicated during the Baghdad Dialogue conference.
In the wake of ExxonMobil’s departure, PetroChina has stepped in to assume the principal operator role at the Qurna 1 oilfield, as confirmed by Abdel Ghani. This transition underscores a shifting landscape within Iraq’s energy sector, with Chinese companies increasingly asserting their presence.
A notable trend emerges as Chinese energy corporations, particularly China Petroleum & Chemical Corporation (Sinopec), expand their investments within Iraq’s energy domain. Sinopec’s interests extend across multiple oilfields including Al-Ahdab, Halfaya, Rumaila, and now West Qurna 1, signifying a strategic repositioning within the region.
According to estimates from S&P Global Commodity Insights, Chinese entities presently command direct control over approximately 24 billion barrels of reserves within Iraq. Furthermore, their active involvement contributes significantly to the daily extraction output, with an estimated average of 3 million barrels of oil per day.
The departure of ExxonMobil from the West Qurna 1 oilfield marks a significant development within Iraq’s energy landscape, highlighting the growing influence of Chinese energy enterprises in the region. As Iraq navigates this transition, attention will be closely focused on the evolving dynamics and the implications for the nation’s energy sector moving forward.
