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ExxonMobil, Basrah Oil Ink Deal to Drill Wells in West Qurna 1

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Exxon Mobil Corporation (XOM - Free Report) and Schlumberger Limited (SLB - Free Report) have entered into an accord with Iraq’s state-run player Basrah Oil Co., said oil ministry of Iraq.

The deal has been inked for drilling 96 wells in West Qurna 1 oilfield, with an aim to boost the field’s production capacity over the next five years by 200,000 barrel per day (Bbl/d). According to Karim Hattab, a deputy oil minister, out of more than 500,000 Bbl/d production capacity, the field is currently producing 380,000 Bbl/d of oil. Hattab added that 150 MMcf/d of associated gas is also being produced by the field.

It is to be noted that ExxonMobil, the operator of West Qurna 1, is reportedly willing to divest its 32.7% interests in the field. The reasons behind the divestment motive are to utilize the proceeds for reducing debt load. Ihsan Ismaael – Iraq’s oil minister – said last month that the country is discussing with the leading integrated energy player to take over the stake in the field with expected recoverable reserves of more than 20 billion barrels.

Both ExxonMobil, an integrated energy giant, and Schlumberger, a leading oil field service player, carry a Zacks Rank #3 (Hold). Meanwhile, two better-ranked players in the energy space include Whiting Petroleum Corporation (WLL - Free Report) and Extraction Oil & Gas, Inc. (XOG - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Extraction is expected to witness earnings growth of 450.8% in 2021.

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