ExxonMobil's $53 billion oil project in Iraq is on the verge of collapse

The joint project of oilmen ExxonMobil and the government of Iraq for $53 billion was called into question. It is reported by Reuters, citing sources in the government of Iraq.

It was planned that under the agreement, ExxonMobil will receive the right to build infrastructure in Iraq and develop two oil fields in the south of the country. This would allow Iraq to increase production from 125 thousand to 500 thousand barrels per day. The project was calculated for 30 years, the Chinese PetroChina was to become a partner of the American oil producer.

For Iraq, which is the second largest exporter of OPEC, increasing production represents a priority, as, in recent years, supplies have been limited in terms of sanctions and military operations. According to the Iraqi government, in 30 years the project is capable of bringing to the treasury $400 billion.

Now the parties stopped the negotiations, and the whole project was on the verge of collapse.

We had to suspend negotiations on the project for two reasons, we found out at Reuters. The first - ExxonMobil could not agree with the government on the terms of the contract.

The second reason is a sharp increase in political tension in the region. In May, ExxonMobil evacuated some of its employees from Iraq. This was preceded by the evacuation of US diplomats from Baghdad. After that, in June, the media reported on a rocket attack on the area near the city of Basra, where the oil companies are concentrated. Among others, there is a representative office of ExxonMobil, which after the incident evacuated to the United States some of the employees who are not citizens of Iraq.

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