Exxon Mobil Strikes Majnoon Oilfield Pact with Iraq

Exxon Mobil inked an agreement with Iraq on Wednesday to help develop its expansive Majnoon oilfield, expanding the country's oil exports. This marks a significant return for the U.S. oil giant, two years after its initial exit. The deal, according to government officials and sources, is part of a broader effort by Iraq to attract foreign investments to accelerate oil and gas production by offering more competitive terms.

With some of the world's largest oil and gas reserves, Iraq had ambitions to rival Saudi Arabia's output, formerly aiming for 12 million barrels per day but currently producing about 4 million bpd. The country now targets exceeding 6 million bpd by 2029, a goal impeded by bureaucratic challenges, corruption, and infrastructure limitations.

The Majnoon oilfield, one of the largest globally with an estimated 38 billion barrels, is set for further development under Exxon's renewed involvement. The agreement includes a profit-sharing mechanism and efforts to enhance oil export infrastructure. Additionally, Iraq's state oil agency SOMO plans a storage arrangement with Exxon in the Asian market, further solidifying the collaboration's commercial footprint.

(With inputs from agencies.)