Chinese energy giant
PetroChina Co. Ltd.
) has acquired a 25% interest in the West Qurna-1 oilfields in
Iraq from U.S. oil major
). However, the financial details of the deal were not
The deal should help PetroChina to set a stronger foothold in
Iraq and synergize with its other projects in the nation. This
should also aid the Chinese government which has become a
significant importer of Iraqi crude. With a slowdown in domestic
oil output, China is looking at other international oil fields to
meet its energy demands.
PetroChina expects that by 2015, overseas production would
comprise half of its business. Accordingly, PetroChina and its
parent company, China National Petroleum Co., have invested
around $37 billion in oil and gas properties since 2009.
Exxon has sold another 10% of its stake in this oil rich field to
state owned Indonesian oil and natural gas company, PT Pertamina.
Exxon will continue to act as the operator with its reduced
holding of 25%. Other parties in the oilfield include
Royal Dutch Shell
) and Iraq's state-owned South Oil Company.
The West Qurna-1 oilfield is located near the Rumalia field, in
Basra, where PetroChina is currently operating along with
). The oilfield currently produces 510,000 barrels per day and
some believe that it has the potential to yield 3 million barrels
of crude per day.
PetroChina is the largest integrated oil company in China. The
company's activities include exploration, development, production
and sale of crude oil and natural gas; refining, transportation,
storage and marketing of petroleum products; manufacture and sale
of chemical products; and transmission of natural gas, crude oil
and refined products.
PetroChina currently carries a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
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