Exxon Mobil Re-Enters Iraq: Landmark Majnoon Oilfield Deal
Iraq and Exxon Mobil are set to sign a landmark agreement on the development and operation of the Majnoon oilfield. This deal marks Exxon's return to Iraq after a two-year hiatus and includes upgrades to Iraq's oil export infrastructure and a profit-sharing agreement involving crude oil and refined products.
In a significant move, Exxon Mobil and Iraq are poised to finalize an agreement on the management, development, and operation of the Majnoon oilfield this Wednesday. This deal marks Exxon's return to the region after a pause of two years, according to four Iraqi officials.
The agreement aims to upgrade Iraq's oil export infrastructure, and it also encompasses a profit-sharing arrangement involving both crude oil and refined products, as disclosed by the officials. Additionally, Iraq's state oil entity, SOMO, plans to collaborate with Exxon to secure storage capacity in Asia, as part of the agreement.
Requests for comments from SOMO and Exxon were met with silence. However, SOMO had previously been reported in advanced negotiations with Exxon for potential storage capacity in Singapore, reflected by their talks in September. Iraq's approach to re-establish ties with global oil majors continues as companies like Chevron, TotalEnergies, and BP have already recommitted.
(With inputs from agencies.)
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