Exxon Mobil is contemplating a return to Iraq, nearly two years after ceasing operations in the country. The Texas-based oil major is planning to sign agreements that would pave the way for exploring Iraq’s significant Majnoon field. Exxon Mobil is a global energy and chemical company committed to meeting the world’s growing demand for energy and high-quality products. It explores for and produces crude oil and natural gas; manufactures fuels, lubricants, and chemicals; and pioneers innovative technologies to address energy challenges.
According to a source familiar with the matter, Exxon Mobil intends to sign a heads of agreement with Basra Oil and SOMO, Iraq’s oil marketing company, in the coming days. The deal is expected to encompass discussions regarding export infrastructure and potential oil marketing projects in the southern region of Iraq. The source requested anonymity because the information is confidential.
In an emailed statement, Exxon Mobil stated that it is in discussions with the Iraqi Oil Ministry as it routinely assesses opportunities to optimise its portfolio. Exxon was among the first Western oil explorers permitted to operate in Iraq in 2010, as the country sought to rebuild its energy industry. However, the company exited its investment in the West Qurna-1 oil field in early 2024, citing challenging contractual terms, OPEC supply constraints, and political instability.
Majnoon, located in southern Iraq, is one of the nation’s largest oil fields, drawing interest from major oil companies. However, profit-sharing arrangements with the government have been problematic, leading Shell to exit the field in 2017. Before commencing oil production, Exxon would need to conduct commercial and technical studies and agree to a production-sharing contract, a process that could take years. Historically, water supplies have also been a concern, as many of Iraq’s wells depend on fluid injection to maintain reservoir pressure.
