REPUBLIKA.CO.ID, JAKARTA -- Subsidiary of PT Pertamina, PT Pertamina Irak Eksplorasi Produksi has completed asset sales agreement with ExxonMobil Iraq Ltd for 10 percent of participating interest in West Qurna I oil field in Iraq. ExxonMobil remains as main contractor with 25 percent of participating interest.
Transfer of participation right has been approved by South Oil Company, Oil Exploration Company Iraq and Shell West Qurna BV as members of consortium of West Qurna I. President Director of Pertamina, Karen Agustiawan said that this acquisition provided an exciting opportunity for company to strengthen its competences and experiences.
Pertamina's participation in West Qurna is a step to achieve company's vision into a world class energy company. Agustiawan said that this corporate action was a strategic milestone for Pertamina to expand its business presence overseas, especially in countries with high oil and gas resources like Iraq.
"Our expansion abroad will support government in maintaining and strengthening resilience of Indonesia's sustainable energy," Agustiawan said on Sunday.
In November 2009, an Exxon Mobil-Shell joint venture won a $50 billion contract to develop the 9-billion-barrel (1.4×109 m3) West Qurna Phase I. As per Iraqi Oil Ministry estimates, the project will require a $25 billion investment and another $25 billion in operating fees creating approximately 100,000 jobs in the underdeveloped southern region. ExxonMobil is set to increase the current production of 0.27 to 2.25 million barrels per day (43×103 to 358×103 m3/d) within seven years. The Iraqi government, in turn, will pay $1.90 per barrel produced by ExxonMobil-Shell alliance.
According to Forbes, West Qurna oil field is the world's biggest oil reserves after Ghawar oil field in Saudi Arabia. The field is a home to an expected 21 billion barrels of oil. These giants are among the world’s last remaining pockets of so-called “easy oil.” They don’t require ultra deep drilling or innovative production techniques, just the application of Big Oil know-how. No wonder the oil companies agreed to develop Iraq’s fields without even getting an ownership stake in the fields and collecting as little as $1.15 per barrel recovered.
Given the size of Iraq’s undeveloped giants there are no technical reasons why within 10 years the country can’t supplant both Iran and Russia to become the world’s No. 2 oil producer after Saudi Arabia. No wonder Iraq holds three of the top 10 fields of the future.
Al-Qurnah or Qurna is a small village in southern Iraq about 74 km northwest of Basra, within the town of Nahairat. Qurna (Arabic for corner) is located at the point where the Tigris and Euphrates rivers join to form the Shatt al-Arab.
There is the small Qurna Tourist Hotel built during Saddam Hussein's reign in order to encourage tourism for the region, however it is most likely not in use now. As of the start of the Iraq War in 2003, conditions at the site were reportedly woeful. Cracked pavement and bullet holes along with the poor condition of the tree itself made future tourism seem out of the question. However, photographic evidence and a certain amount of western presence have made it a viable tourist destination once again.
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