Iraq: Business Transaction Shell Sells Stake in Iraq Oil Field for 406 Million Dollars
A subsidiary of Itochu Corporation has purchased 19.6 % stake in the oil field. With this, the Japan-based company will also assume debt of 144 million dollars.
Iraq – Shell EP Middle East Holdings has agreed to sell the entire share capital of Shell Iraq which holds its 19.6 % stake in the West Qurna 1 oil field, for 406 million dollars, to a subsidiary of Japan’s Itochu Corporation.
The purchaser will also assume debt of 144 million dollars as part of the transaction. The sale has received the necessary regulatory consent, is expected to complete in the next few days, and has an effective date of December 31, 2015.
Since joining the project in 2009, Shell has enjoyed successful cooperation with its partners in the West Qurna 1 venture, which will continue to be operated by Exxon Mobil.
Shell’s other businesses in the country will not be affected by this divestment.