Exxon Mobil Returns to Iraq: Strategic Oil Partnership Reignites

Exxon Mobil has inked an agreement with Iraq to develop the Majnoon oilfield and expand export infrastructure, reflecting a strategic return to Iraq after a two-year hiatus. This deal aims to boost Iraqi oil output amidst challenges, marking a significant step in luring back Western oil majors.

Exxon Mobil is making a strategic return to Iraq, signing an agreement to develop the Majnoon oilfield and expand the country's oil export infrastructure. This comes two years after Exxon's departure, highlighting Iraq's efforts to boost oil production despite past challenges, including war and corruption.

Prime Minister Mohammed Shia al-Sudani disclosed the deal, which involves a profit-sharing agreement covering both crude oil and refined products. The plan also aims to improve Iraq's oil export infrastructure in the southern region, according to insiders familiar with the matter.

In addition to the agreement with Exxon, Iraq's SOMO is set to negotiate further deals ensuring storage capacity in Asia, focusing on Singapore. This move is part of a wider strategy that saw Iraq appealing to other oil majors, including Chevron and BP, to return and enhance production capabilities.

(With inputs from agencies.)