US energy giant ExxonMobil Corp. has officially exited the West Qurna 1 oilfield in southern Iraq and handed over its operations to PetroChina as the lead contractor.

The handover was marked by a meeting between senior Iraqi oil officials and executives from ExxonMobil, PetroChina, and Basra Oil Co. on Monday at the West Qurna 1 field near Basra.

“We are meeting today to bid farewell to ExxonMobil, and at the same time, we congratulate PetroChina for becoming the lead contractor,” Basim Mohammed, deputy oil minister for upstream affairs, told Reuters.

PetroChina now holds the largest stake in the field after the departure of Exxon.

Last year, Iraq and Indonesia made a significant move in the energy sector by acquiring ExxonMobil’s stake in West Qurna 1. This sale agreement was signed by Iraq’s state-run Basra Oil Co. (BOC) and Indonesia’s state-owned Pertamina, with Iraq acquiring 22.7% and Indonesia acquiring 10% of Exxon’s stake. This move has served the interests of both parties, as stated by Mohammed, and is expected to boost production in the coming years.

West Qurna 1, one of the world’s largest oilfields, currently produces around 550,000 barrels per day (bbl/d). With recoverable reserves estimated at more than 20 billion barrels, it is a valuable asset for both Iraq and Indonesia. The acquisition of Exxon’s stake will give them a larger share in this lucrative oilfield and increase their control over its production.

In order to further increase production, Iraq and PetroChina have plans to boost production to 600,000 bbl/d by the end of 2024.

ExxonMobil’s exit from West Qurna 1 means that the company will no longer have a presence in Iraq’s energy sector. BOC officials have stated that this move will not have a major impact on the operations at West Qurna 1, as they have already taken over Exxon’s share.

The deputy oil minister has expressed the government’s keenness to invite ExxonMobil to play a role in developing future energy projects in Iraq.