Russia’s Lukoil confirmed this morning that it has received an offer from Exxon, and that the Russian company will consider the stake. Exxon also has reportedly talked with BP PLC (NYSE: BP), Eni SpA (NYSE: E) and China’s CNPC about buying the stake.
Exxon has signed contracts with the Kurdistan Regional Government to develop six projects in Kurdistan, and that has led to friction between the U.S. supermajor and the Iraqi government, which claims it is the sole controller of oil rights in the country. Iraq barred Exxon from bidding on new fields in an April auction as punishment for the company’s agreement with the Kurds.
Under its contract for West Qurna-1, Exxon receives $1.90 per barrel for each barrel it produces above 244,000 barrels a day, the field’s production level when the contract was signed in 2010. The field currently produces about 400,000 barrels a day, and the Iraqis’ ultimate goal calls for 2.85 million barrels a day. No price for Exxon’s stake has been revealed.
It is early days yet in any discussion of a sale, but Exxon apparently has cast its lot with the Kurds, who have offered a production-sharing deal that could be much more lucrative for the company than the per-barrel deal it has with the Iraqi government. Exxon also is betting that the central government will not use force to bring the Kurds to heel. That does not appear to be likely anytime soon, but it may be prudent never to say never when it comes to any issue related to oil.
Paul Ausick
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.