According to Thamer Ghadhban — top energy advisor to Iraq’s Prime Minister — the country has a $100 billion commitment from Exxon (NYSE:XOM), BP (NYSE:BP), and Eni (NYSE:E), to develop its major oilfields.
Exxon (NYSE:XOM) is expected to contribute $50 billion for developing the supergiant West Qurna Phase 1 oilfield, with BP (NYSE:BP) and Eni (NYSE:E) spending the other $50 billion on development of the Rumaila and Zubair oil fields.
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“We have $100 billion for the three fields,” Mr. Ghadhban told reporters on the sidelines of an Iraqi energy conference in Istanbul organized by the London-based CWC Group. “The bulk (of the finance) is for West Qurna 1 because the Rumaila and Zubair fields were well advanced in terms of development, such as number of wells, oil field facilities, other infrastructure, while West Qurna phase 1 needs more,” he said.
The three oilfields mentioned above together contribute the lion’s share of Iraq’s oil (NYSE:OIL) output. The commitments stem from contracts signed a couple of years ago which stipulate that the oil majors (NYSE:XOP) would be compensated through ‘costs and remuneration’ once they complete their investments for development of the fields and demonstrated that enhanced production targets are achieved.