Exxon (XOM) Shares Slump on Exit from Major Iraqi Oil Project
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Exxon Mobil (NYSE: XOM) shares are ticking lower Wednesday following reports its exiting a major oil project.
According to Reuters, the energy giant said it will be pulling out of a $50 billion oil project in Iraq and is already in talks with other companies on selling its stake. The move comes as Exxon has signed deals in the Kurdistan region of Iraw, but blacklisted the capital of Baghdad as illegal.
The $50 billion deal was for development of the West Qurna-1 oilfield in South Iraq/
Baghdad plans to respond to Exxon's letter on Sunday. The capital is still not sure who would replace Exxon on the play, which is said to pump about 400,000 barrels per day. Most likely, companies from Russia, China, and Brazil will all be considered, though Royal Dutch Shell (NYSE: RDS-A)(NYSE: RDS-B) is a minority player in the region.
Exxon shares are down 1.4 percent at the start Wednesday.
According to Reuters, the energy giant said it will be pulling out of a $50 billion oil project in Iraq and is already in talks with other companies on selling its stake. The move comes as Exxon has signed deals in the Kurdistan region of Iraw, but blacklisted the capital of Baghdad as illegal.
The $50 billion deal was for development of the West Qurna-1 oilfield in South Iraq/
Baghdad plans to respond to Exxon's letter on Sunday. The capital is still not sure who would replace Exxon on the play, which is said to pump about 400,000 barrels per day. Most likely, companies from Russia, China, and Brazil will all be considered, though Royal Dutch Shell (NYSE: RDS-A)(NYSE: RDS-B) is a minority player in the region.
Exxon shares are down 1.4 percent at the start Wednesday.
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