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5/7/2019, 7:07 PM (Source: TeleTrader)
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Iraq nearing $53B Exxon, PetroChina contract

Prime Minister of Iraq Adel Abdul Mahdi expressed determination on Tuesday to clinch a deal with Exxon Mobil Corp. and PetroChina Co. Ltd. aimed at increasing the output of crude in the Middle Eastern country. The idea behind the $53 billion project is to use desalinated seawater to boost pressure while extracting oil from underground.

The head of government revealed the agreement was reached in general and that the particulars are being worked out with the listed subsidiary of China National Petroleum Corp. (CNPC) and the Texas-based fossil fuel powerhouse. Abdul Mahdi estimated potential proceeds at $400 billion before the 30-year contract expires as production at two oilfields is increased by more than three times to half a million barrels per day.

The partnership includes processing 100 million cubic feet of gas per day. Iraq seems to have won waivers from sanctions by the United States against Iran, enabling economic cooperation with the neighboring state and importing its gas.

Breaking the News / IT