KRG approves DNO purchase of ExxonMobil share in Bashiqa: DNO

ERBIL, Kurdistan Region — Norwegian oil and gas operator DNO bought out ExxonMobil’s share in Kurdistan Region’s Bashiqa oil field, the company announced on Tuesday after the government approved the sale. 

"This acquisition and plans for fast-track development underscore our belief in the potential of the Baeshiqa license and more broadly our long-term commitment to Kurdistan,” said DNO Executive Chairman Bijan Mossavar-Rahmani. “Once we get the green light from the authorities to proceed, first production will be a matter of months rather than years.”

The Kurdistan Regional Government (KRG) approved DNO’s purchase of ExxonMobil’s remaining 32 percent interest in Bashiqa. The sale doubles DNO’s stake in the field to 64 percent. Turkish Energy Company holds 16 percent and the KRG has the remaining 20 percent. 

ExxonMobil is trying to quit Iraq. In addition to selling off its share in Bashiqa, it is trying to divest itself of its stake in Basra’s West Qurna 1 oil field. 

"The sale aligns with ExxonMobil's strategy to focus on advantaged assets with the lowest cost of supply, including developments in Guyana, Brazil and the US Permian Basin," an ExxonMobil spokesperson told S&P Global Platts. "We are proud of our history in Iraq and our longstanding positive relationships with the Basra Oil Co. and the government of Iraq, and will continue to work closely and constructively to reach an equitable resolution."

The sale has stalled as Iraq was seeking to take over the 32.7 percent share itself. ExxonMobil has filed for arbitration. 

ExxonMobil first invested in the Kurdistan Region in 2011. It was the largest contract the KRG had landed and was followed by deals with Chevron, Total, and Gazprom. While it was a political triumph for Erbil, it sparked outrage in Baghdad and Washington who were focused on a “one Iraq” policy with a strong central government.