Iraq considers purchasing ExxonMobil's share in West Qurna 1 oilfield

London (Quantum Commodity Intelligence) – Iraq is reportedly considering the purchase of ExxonMobil's stake in the West Qurna 1 oil field via state-owned firm Basra Oil Co (BOC).

Iraq Oil Minister Ihsan Abdul Jabbar was quoted by Reuters as saying that the ministry is considering BOC 'taking ownership of the Exxon stake in West Qurna 1 and leading the project, as happened with Majnoon'.

The move is a part of the country's efforts to boost gas production, said the report.

As part of this plan, Iraq is also planning to invest $3bn in BOC to boost production by 40% to reach 1.4 billion cubic feet (bcf) a day over the next five years.

Last month, Iraq's oil ministry said it was in talks with US energy companies to find a buyer for ExxonMobil's 32.7% in the West Qurna 1 oil field.

ExxonMobil operates the 500,000 b/d capacity field, having signed a 20-year service contract in 2010. Other stakeholders include PetroChina, which holds 32.7%, Japan's Itochu with 19.6pc and Indonesia's Pertamina with 10%.