US-based oil and gas company ExxonMobil is reportedly looking to re-enter Iraq after an absence of almost two years.
The company is moving towards agreements that could open the way to operations in the Majnoon oilfield, reported Bloomberg, citing sources.
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A source with knowledge of the discussions said the oil giant intends to enter into heads of agreement (HoA) with Basra Oil and the Iraq-based State Organization for Marketing of Oil (SOMO) in the upcoming days.
The proposed HoA is said to cover discussions on export infrastructure and potential oil marketing arrangements for projects in southern Iraq.
In an emailed statement to the media outlet, an ExxonMobil spokesperson said: “ExxonMobil is in discussions with the Iraqi Oil Ministry as we routinely look at opportunities to optimise our advantaged portfolio.”
Exxon was one of the earliest Western oil companies permitted to operate in Iraq after the fall of former Iraqi President Saddam Hussein, gaining access in 2010 as the country rebuilt its petroleum industry.
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By GlobalDataThe company withdrew from its main holding in Iraq, a stake in the West Qurna‑1 field, in early 2024, citing unfavourable contract terms, broader OPEC supply constraints and political instability.
Located in southern Iraq, Majnoon is one of the largest fields in the country and has long been of interest to oil companies globally.
Profit‑sharing arrangements with the Iraqi Government have previously been contentious; Shell left Majnoon in 2017 after disagreements over such terms.
Any Exxon involvement at Majnoon would require completion of commercial and technical studies and the negotiation of a production‑sharing contract before production could commence, a procedure that might take several years.
Water availability has also been a recurring operational concern in Iraq, as many reservoirs depend on fluid injection to maintain pressure.
Last month, ExxonMobil took a final investment decision on the Hammerhead development, the seventh project on the Stabroek block offshore Guyana.
