Identifier
Created
Classification
Origin
09BAGHDAD2686
2009-10-06 10:31:00
CONFIDENTIAL
Embassy Baghdad
Cable title:
IRAQ OIL: EXXONMOBIL AGGRESSIVELY PURSUING WEST
how-toVZCZCXYZ0000 RR RUEHWEB DE RUEHGB #2686 2791031 ZNY CCCCC ZZH R 061031Z OCT 09 FM AMEMBASSY BAGHDAD TO RUEHC/SECSTATE WASHDC 4967 INFO RUCNRAQ/IRAQ COLLECTIVE RUEHC/OPEC COLLECTIVE RHEBAAA/USDOE WASHDC RUEAIIA/CIA WASHDC RUEKJCS/DIA WASHDC RHEHNSC/NSC WASHDC RUEKJCS/SECDEF WASHINGTON DC
C O N F I D E N T I A L BAGHDAD 002686
SIPDIS
E.O. 12958: DECL: 10/06/2019
TAGS: EPET ENRG ECON EINV EAID PREL IZ
SUBJECT: IRAQ OIL: EXXONMOBIL AGGRESSIVELY PURSUING WEST
QURNA FIELD
REF: BAGHDAD 2299
Classified By: Economic Counselor John Carwile
for reasons 1.4 (b) & (d)
C O N F I D E N T I A L BAGHDAD 002686
SIPDIS
E.O. 12958: DECL: 10/06/2019
TAGS: EPET ENRG ECON EINV EAID PREL IZ
SUBJECT: IRAQ OIL: EXXONMOBIL AGGRESSIVELY PURSUING WEST
QURNA FIELD
REF: BAGHDAD 2299
Classified By: Economic Counselor John Carwile
for reasons 1.4 (b) & (d)
1. (C) Deputy Oil Minister for Midstream Shamma told econoffs
that ExxonMobil--which unsuccessfully bid on the West Qurna
oil field in Iraq's June 30 bid round--has agreed to accept
the Oil Ministry's low remuneration fee and enter
negotiations for the production service contract for West
Qurna. Shamma did not disclose the fee or whether Royal
Dutch Shell (a 20 percent partner with ExxonMobil in the June
30 bid) would be ExxonMobil's partner. We believe, however,
that the fee will be--or very near--the $1.90 per barrel fee
that the Oil Ministry offered during the June bid round. In
its June 30 bid, ExxonMobil/Shell committed to raise West
Qurna's production by 2 million barrels per day (over 700
percent) over 7 years.
2. (C) Shamma also confirmed that the Oil Ministry believes
negotiations with British Petroleum (BP)/China National
Petroleum Corporation (CNPC) for the production service
contract for the North and South Rumaila oil-field group--the
only field awarded during the June 30 bid round--are
finished, and the final draft of the contract will be ready
very soon.
3. (C) Comment: If BP/CNPC achieves a production-increase
commitment of 1.8 million barrels per day from Rumaila and
ExxonMobil achieves a production-increase commitment of 2
million barrels per day, Iraq's current oil production would
increase by 150 percent over the next 7 years, to about 6.3
million barrels per day.
HILL
SIPDIS
E.O. 12958: DECL: 10/06/2019
TAGS: EPET ENRG ECON EINV EAID PREL IZ
SUBJECT: IRAQ OIL: EXXONMOBIL AGGRESSIVELY PURSUING WEST
QURNA FIELD
REF: BAGHDAD 2299
Classified By: Economic Counselor John Carwile
for reasons 1.4 (b) & (d)
1. (C) Deputy Oil Minister for Midstream Shamma told econoffs
that ExxonMobil--which unsuccessfully bid on the West Qurna
oil field in Iraq's June 30 bid round--has agreed to accept
the Oil Ministry's low remuneration fee and enter
negotiations for the production service contract for West
Qurna. Shamma did not disclose the fee or whether Royal
Dutch Shell (a 20 percent partner with ExxonMobil in the June
30 bid) would be ExxonMobil's partner. We believe, however,
that the fee will be--or very near--the $1.90 per barrel fee
that the Oil Ministry offered during the June bid round. In
its June 30 bid, ExxonMobil/Shell committed to raise West
Qurna's production by 2 million barrels per day (over 700
percent) over 7 years.
2. (C) Shamma also confirmed that the Oil Ministry believes
negotiations with British Petroleum (BP)/China National
Petroleum Corporation (CNPC) for the production service
contract for the North and South Rumaila oil-field group--the
only field awarded during the June 30 bid round--are
finished, and the final draft of the contract will be ready
very soon.
3. (C) Comment: If BP/CNPC achieves a production-increase
commitment of 1.8 million barrels per day from Rumaila and
ExxonMobil achieves a production-increase commitment of 2
million barrels per day, Iraq's current oil production would
increase by 150 percent over the next 7 years, to about 6.3
million barrels per day.
HILL