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(Bloomberg) – BP Plc and Russia’s Lukoil PJSC want to sell their assets in Iraq, according to the country’s oil minister.
In a video posted to a Facebook page under his name, Ihsan Abdul Jabbar said that Lukoil sent him a notification to sell his stake in the West Qurna-2 field to Chinese companies, and that BP wanted to withdraw from the giant field of Rumaila.
“The existing investment environment in Iraq is inappropriate for retaining major investors,” he said. “All major investors are looking for either another market or another partner. We, as an investment environment, are unsuitable for major partners. “
Jabbar, who appeared before a parliamentary committee last week, also said that Exxon Mobil Corp. wanted to sell his stake in West Qurna-1 for no more than $ 400 million, a price he called “very cheap”. The state-controlled Basra Oil Co. is considering a deal, he said.
No one from Lukoil or BP was available to comment outside of regular business hours.
Iraq pumps about 4 million barrels of crude a day, more than any other member of the Organization of the Petroleum Exporting Countries except Saudi Arabia. Yet international energy companies have been put off in recent years by difficult contract terms, late payments and political instability.
Widespread protests erupted last week over power outages, leading to the resignation of Iraq’s electricity minister. The government said oil production had not been affected by the power cuts.
(Updates with the political context.)
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