The West Qurna-1 field is one of the world’s largest fields. Credit: John R Perry from Pixabay.

Iraq has officially sent a request to acquire shares of US energy giant ExxonMobil in the West Qurna 1 oil field.

National Iraqi company Basra Oil Company (BOC) director Khalid Hamza was reported by Reuters as saying in an interview: “A decision has been made and we sent a formal letter to ExxonMobil asking to buy its share.”

Hamza noted the oil and finance ministries will undertake procedures required to secure financing for the possible acquisition, which is estimated to value $350m.

Subject to acquiring the stake in the West Qurna 1 field, Basra Oil plans to coordinate with the other field partners to ensure its continuous operations, Hamza further said.

The move follows the media reports that ExxonMobil is looking to divest its 32.7% stake in Iraq’s West Qurna-1 oil field in a bid to slash its debt.

Reports soon emerged that the Iraqi Ministry of Oil is holding talks with other US companies to find possible buyers for ExxonMobil’s stake in the oil field.

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With a 500,000 b/d capacity, the ExxonMobil-operated West Qurna-1 field is one of the world’s largest fields located in the southern part of Iraq.

Chinese state-controlled PetroChina (32.7%), Japan’s Itochu (19.6%), Indonesia’s Pertamina (10%), and Iraq’s Oil Exploration Co. (5%) are the other stakeholders in the oil field.

The field is estimated to contain recoverable reserves of more than 20 billion barrels.

Earlier this year, Iraq approved the investment budgets of around $7bn for the development of BOC-managed southern Basra oilfields for 2021.