Oxy to sell Zubair stake

International major and the fourth-largest US oil producer, Occidental Petroleum, is set to offload its stake in the Zubair oilfield to Iraq’s state-run South Oil Company, Iraqi oil officials announced on Wednesday.

“Occidental asked the ministry for permission to sell its stake in the Zubair field and the ministry is in the process of approving the request. South Oil Company will acquire Occidental’s stake,” Reuters reported ministry spokesman Asim Jihad as saying.

Occidental holds a 29.69-percent stake in the 4-billion-barrel field in southern Iraq. Italy’s Eni operates the field with a 41.56-percent share, with South Korean operator Korea Gas Corporation, or KOGAS, assuming 23.75 percent and Iraq’s state-run Missan Oil Company holding the remaining 5 percent.

The partners signed a 20-year deal in 2010 to develop the field, where production currently stands at around 352,000 barrels per day, according to South Oil Company officials.

Senior Occidental executive Vicki Hollub said in October that the company was interested in selling non-core assets in the Middle East, according to Reuters.

For more news and features on Iraq, click here.