Exxon, Shell grab Iraqi oil deal

BAGHDAD, Nov. 5 (UPI) -- Supermajors Exxon Mobil and Royal Dutch Shell on Thursday won the rights to develop the West Qurna-1 oil field in southern Iraq.

The team won the deal over rival offers from another consortium led by ConocoPhillips and Russian giant LUKoil. The China National Petroleum Corp. launched a separate bid.

CNPC and BP earlier this week signed off on a deal for the Rumaila field in southern Iraq.

The Exxon-Shell team had offered a deal for the West-Qurna field at $4 per barrel, but ultimately settled for a $1.90 per barrel arrangement with the Iraqi Oil Ministry, the Wall Street Journal reports.

The deal moves Iraq closer to its oil production goals. Oil analysts expect most of the resource fields in Iraq are underexplored or underdeveloped.

The deal requires approval from the Iraqi Parliament before it is finalized.

Iraq held a series of oil auctions in June, though many investors stayed away because of government terms and a risky security environment.

More than 40 companies will try again at a second round of bidding scheduled for Dec. 10.