Exclusive-Exxon in talks with Iraq about buying Lukoil stake in giant West Qurna 2 oilfield, sources say

By Ahmed Rasheed

BAGHDAD, Dec 2 (Reuters) - Exxon Mobil has approached the Iraqi lipid ministry to explicit its involvement successful buying Russian steadfast Lukoil's bulk involvement successful the elephantine West Qurna 2 ​oilfield, 5 Iraqi authoritative sources with nonstop cognition of the substance told Reuters.

Lukoil is trying to merchantability its planetary assets ‌after the U.S. imposed sanctions connected the company, and Exxon's determination would people a large enlargement of the U.S. major's instrumentality ‌to Iraq arsenic Moscow tries to offload cardinal vigor assets.

Exxon declined to remark portion Lukoil did not respond to Reuters' petition for comment.

The U.S. Treasury cleared imaginable buyers to speech to Lukoil until December 13, but they volition request support for circumstantial deals. Reuters reported past period that Exxon had joined Chevron successful considering options to bargain parts of Lukoil's portfolio.

GIANT OILFIELD PRODUCES ⁠AROUND 9% OF IRAQ'S TOTAL

Lukoil's ‌biggest overseas plus is simply a 75% operational involvement successful Iraq's West Qurna 2 oilfield, 1 of the world's largest with output of astir 470,000 barrels per day. The tract accounts ‍for astir 0.5% of satellite lipid proviso and 9% of full output successful Iraq, OPEC's second-largest shaper aft Saudi Arabia.

Lukoil has declared unit majeure astatine the tract aft Iraq halted currency and crude payments to the company.

Exxon had agelong been the relation of the neighbouring ​West Qurna 1 task earlier exiting past twelvemonth erstwhile that portion of the tract produced astir 550,000 bpd. In ‌the run-up to Exxon's exit, the then-head of the state-run Basra Oil Company said Exxon had valued its 32.7% involvement successful West Qurna 1 astatine $350 million. The 2 parts of the West Qurna tract are located successful Iraq's south, adjacent the metropolis of Basra.

In October, Exxon signed a non-binding statement with Iraq to assistance it make its elephantine Majnoon oilfield and grow lipid exports, marking the U.S. major's instrumentality to the country.

Exxon's determination ⁠to instrumentality to Iraq followed a drawstring of deals with different lipid companies,​ including Chevron, BP and TotalEnergies, arsenic Iraq seeks to accelerate ​oil and state accumulation by offering much generous terms.

IRAQ FAVOURS EXXON FOR TAKEOVER, SOURCE SAYS

"Exxon is our preferred enactment to instrumentality implicit from Lukoil. The institution has the capableness and acquisition needed to negociate ‍a tract arsenic ample and analyzable ⁠as West Qurna 2,” said a elder Iraqi lipid authoritative who oversees overseas companies operations successful the south.

A elder lipid ministry authoritative echoed the statement.

Iraq's lipid ministry said connected Monday it had invited respective U.S. ⁠oil companies to participate negotiations astir taking implicit West Qurna 2.