Iraq cancels giant oil deal with Exxon Mobil

Iraq cancels giant oil deal with Exxon Mobil

2019/8/9 13:20

Iraq cancels giant oil deal with Exxon Mobil[Baghdad-Where]
Five Iraqi officials said that Iraq is close to the conclusion of an agreement with the international oil companies [BP] British and Italian [ENI] on a pipeline intended for export was originally planned to be part of a huge deal with the oil company American giant Exxon Mobil.
The sources, who asked not to be named because the discussions were not made public, told Reuters that under a proposed $ 400 million deal, BP and Italy’s Eni would manage a plan to build two offshore pipelines to export oil from southern Iraq through the Gulf.

Officials said the pipeline work was planned to be part of a larger $ 53 billion project that Exxon appeared to be gearing up for earlier this year, but an agreement with Baghdad was halted by contractual disputes and security concerns.
The 30-year-old giant is at the heart of Exxon’s plans to expand in Iraq, the second-largest producer in the Organization of the Petroleum Exporting Countries [OPEC] and the fragmentation of schemes from the deal could negatively affect the company’s ambitions.
BP and ENI talks with Baghdad follow Iraqi officials in June announcing Hyundai Engineering and Construction of South Korea to build a $ 2.4 billion seawater injection facility, another part of the deal that was under discussion with Exxon.
Exxon Mobil and Eni declined to comment, while BP has yet to comment.

alliraqnews.com