- Exxon Mobil returns to Iraq, supporting Majnoon oilfield development and exports.
- The deal includes profit-sharing and expanding Iraq’s southern crude oil facilities.
- Iraq targets increasing oil production beyond six million barrels daily by 2029.
Exxon Mobil reached an agreement with Iraq to assist in the development of its massive Majnoon oilfield and to increase oil exports, according to government officials and sources, marking the return of the U.S. company to the country two years after its exit.
The non-binding arrangement with Exxon, a leading U.S. firm, comes after a series of agreements with various other oil companies such as Chevron, BP, and TotalEnergies, as Iraq aims to boost oil and gas output by providing more favorable conditions.
Iraq possesses some of the largest oil and gas reserves globally and previously intended to compete with Saudi Arabia by producing up to 12 million barrels daily. It now generates approximately 4 million bpd and intends to surpass 6 million bpd by 2029, although advancements have been hindered by bureaucracy, corruption, infrastructure issues, years of conflict, and sectarian strife.
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Majnoon, situated 60 km (37 miles) from Basra in southern Iraq, ranks among the largest oilfields globally, containing an estimated 38 billion barrels of oil. The accord showcases Iraqi officials' efforts to modernize the energy sector and enhance ties with Washington, stated Muwafaq Abbas, an oil expert and former crude operations manager at the state-owned Basra Oil Company.
Iraqi Prime Minister Mohammed Shia al-Sudani revealed the agreement with Exxon on Wednesday, but specifics were not disclosed. The accord will entail a profit-sharing arrangement related to crude oil and refined goods, as well as intentions to enhance Iraq's oil export facilities in the south, based on information from four sources familiar with the situation. Iraq's state oil firm SOMO will sign a deal with Exxon to obtain storage capacity in the Asian market, the sources reported.