Change of course at West Qurna 1: PetroChina takes the reins

A recently signed agreement between Exxon Mobil and PetroChina marks a major turning point for the West Qurna 1 oilfield.

Share:

Changement majeur à West Qurna 1

The settlement agreement signed with Exxon Mobil Corp is a crucial milestone in the development of the West Qurna 1 field. This agreement allows PetroChina to become the main contractor for the field, a decision supported by the Iraqi Ministry of Oil and the Basra Oil Company (BOC).

Implications of the Exxon Settlement Agreement

Hassan Mohammed, BOC’s deputy director in charge of oilfield and license tower affairs, explains the importance of this transition. According to him, study of the settlement agreement has led to the conclusion that PetroChina is the ideal candidate to run operations at West Qurna 1.

PetroChina’s rise to power

The signing of this agreement was also accompanied by a “sales agreement”, settling the financial aspects of the transfer of Exxon Mobil Corp’s share in the oil field by the Iraqi state-owned BOC. Mohammed stresses that this agreement includes a commitment to resolve at a later date the tax value that Exxon must pay for the sale of its stake.

Financial and Fiscal Details of the Agreement

Although the tax details remain unresolved, with two possible options – a tax settlement or recourse to arbitration, the general framework of the agreement has now been established. Exxon and PetroChina did not immediately react to these developments, but two oil officials from the West Qurna 1 field confirmed details of the settlement and sales agreement signed with Exxon.

Impact on the Iraqi Energy Sector

This change of ownership is not an isolated event. Last year, Pertamina, Indonesia’s national oil and gas company, acquired 10% of Exxon Mobil’s share in the West Qurna 1 oil field, increasing its stake to 20%. At the same time, the BOC bought 22.7% of the field. In addition, Basra Oil Company director Khalid Hamza revealed in an interview in 2021 that Exxon was looking to sell its share for $350 million. West Qurna 1, located in southern Iraq, is one of the world’s largest oil fields, with recoverable reserves estimated at over 20 billion barrels. It currently produces around 560,000 barrels a day, according to field managers.
With this departure from West Qurna 1, Exxon will no longer have a presence in the Iraqi energy sector, stress BOC officials. This transition marks an important milestone in the region’s energy economy, reflecting a change in the dynamics of partnerships and ownership within the oil industry.

The agreement between Exxon Mobil and PetroChina for West Qurna 1 marks a significant turning point in the management of one of the world’s largest oil fields. Indeed, this development, characterized by a change in leadership and complex financial and fiscal implications, opens a new chapter for the energy industry in Iraq and beyond, raising questions about the future of international collaboration in the energy sector.

The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.
French greenhouse gas emissions are expected to rise by 0.2% in the first quarter of 2025, indicating a global slowdown in reductions forecast for the full year, according to Citepa, an independent organisation responsible for national monitoring.
The Republican budget bill passed by the U.S. Senate accelerates the phase-out of tax credits for renewable energies, favoring fossil fuels and raising economic concerns among solar and wind industry professionals.
Rapid growth in solar and wind capacities will lead to a significant rise in electricity curtailment in Brazil, as existing transmission infrastructure remains inadequate to handle this massive influx of energy, according to a recent study by consulting firm Wood Mackenzie.
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.
The European battery regulation, fully effective from August 18, significantly alters industrial requirements related to electric cars and bicycles, imposing strict rules on recycling, supply chains, and transparency for companies.
The European Parliament calls on the Commission to strengthen energy infrastructure and accelerate the implementation of the Clean Industrial Deal to enhance the continent's energy flexibility and security amid increased market volatility.