Iraqi Oil Minister: HAL. US) and XOM. US) negotiates an equity interest in the WestQurna-1 oilfield

According to the Iraqi oil minister, Halburton (HAL. US) and ExxonMobil Corporation (XOM. US) is in talks to sell the latter a portion of its stake in WestQurna-1, a giant oilfield project in southern Iraq.

Iraqi Oil Minister Ihsan Abdul Jabbar said Iraq wanted ExxonMobil's stake to be available to U.S. partners. He added that iraq would step in if negotiations with Halliburton failed. A few days ago, Jabbar said the Iraqi state-owned company Basra Oil Co. was a potential buyer.

"Basra Oil wants to acquire a stake in ExxonMobil, but in order to maintain a balance between partners and markets, we support our partners in the United States," Jabbar said. ”

It's worth noting, though, that Halliburton has previously said that the company is interested in acquiring a stake in ExxonMobil that is inaccurate.

In 2010, after the fall of Saddam Hussein and years of conflict, Iraq sought to rebuild its energy sector, and ExxonMobil became one of the first Western oil exploration companies to be allowed into Iraq. For about 40 years before that, foreign companies had been largely unable to enter Iraq's oil sector.

But with harsh contract terms, OPEC supply constraints, and ongoing political instability, ExxonMobil's attitude toward the West Qurna field has recently become more lukewarm.

So, about a month ago, news came out that ExxonMobil was planning to exit the field project, and news of Halliburton as a potential buyer surfaced. While Halliburton has long been one of ExxonMobil's prime contractors for the field, it will be rare for a company focused on mapping, fracking and repairing other company assets to gain an actual ownership stake.

On the other hand, Jabbar said the Department of Energy is in discussions with CVX.US about its potential investment contract in the southern city of Nasiria, which is expected to be signed in the first quarter of 2022.

Jabbar said Iraqi National Oil will be a partner in Chevron's oil exploration investments and holds a 40 percent stake in the joint venture. The U.S. oil giant will conduct exploration work in the city and is expected to produce 600,000 barrels of oil per day over at least 10 years, the minister noted.