ExxonMobil is reportedly in negotiations with Iraq to make a comeback to the nation's oilfields, according to a report by ZAWYA, citing state officials.

This development comes just a year after the company withdrew from one of Iraq's largest producing fields.

In 2024, ExxonMobil ceased operations at the West Qurna 1 oilfield in southern Iraq, transferring its responsibilities to PetroChina, which now holds the primary stake.

This field is among the world's most significant oil reservoirs, with more than 20 billion barrels (bbbl) of proven crude deposits and a production rate of nearly 550,000 barrels per day (bpd).

The company's decision to exit the West Qurna 1 oilfield followed its earlier departure from the Pirman gas block in Kurdistan, north Iraq.

Oil Ministry Undersecretary Bassim Khudair was quoted as saying: “ExxonMobil has conveyed its willingness to return to Iraq.”

He further elaborated that the company is exploring new opportunities within Iraq's oilfields, indicating a growing interest from the US and other international companies in the Iraqi oil industry.

Concurrently, discussions are ongoing with Chevron for development contracts in the Southern Nasiriyah oilfield and the Balad field in the North-Central Saladin governorate.

Iraq is actively seeking foreign investment in its oil sector as the country aims to increase its crude output capacity by 50% to more than six million barrels per day by 2028.

With approximately 145bbbl of oil reserves, the country is aiming to increase its reserves to more than 160bbbl through various development projects.

In the past two years, Iraq has awarded nearly 30 contracts to companies such as TotalEnergies, BP and various Chinese operators in its fifth and sixth oil licensing rounds, with plans for another round this year.

Recently, US-based HKN was awarded a contract to develop the Hamrin oilfield in the Northern Saladin governorate, with the goal of more than doubling its production. This field had been severely impacted by ISIS during conflict a decade ago.

In related news, the State Oil Company of Azerbaijan Republic has entered into new agreements with ExxonMobil and BP for oil and gas exploration, aiming to maintain Azerbaijan's oil output at around 582,000bpd for the next five years with the support of Western energy investments.