Iraq finalizing $53B deal with ExxonMobil, PetroChina to boost oil production

The prime minister of Iraq says he has instructed his country's Oil Ministry to finalize an agreement with global energy giants ExxonMobil and PetroChina to lead a $53 billion megaproject to boost oil production.

Speaking at a press conference Tuesday, Adel Abdul-Mahdi said Iraq will partner with the companies to pump desalinated seawater from the Persian Gulf into subterranean oil formations to raise well pressures and boost production.

Iraq is producing oil at record levels, but top officials are targeting even higher output to meet federal budget projections and finance the country's reconstruction after 16 years of war.

Abdul-Mahdi said Iraq has already reached the principles of a 30-year arrangement with ExxonMobil and PetroChina, but said the details still need to be finalized.