ExxonMobil is considering re-entering Iraq after a nearly two-year hiatus by signing agreements that would lay the groundwork to explore the country's giant Majnoon field.
According to a person familiar with the matter, the Texas-based oil major is expected to sign a heads of agreement with Basra Oil Co. and Iraq’s State Organization for Marketing of Oil (SOMO) in the coming days. The deal will include discussions on export infrastructure and potential oil marketing projects in southern Iraq. The source requested anonymity as the information has not been publicly disclosed.
In a statement, Exxon Mobil said: “Exxon Mobil is in discussions with the Iraqi Oil Ministry as we routinely look at opportunities to optimize our advantaged portfolio.” The Iraqi embassy in Washington, D.C., did not immediately respond to requests for comment.
Exxon Mobil was one of the first Western companies to enter Iraq’s oil sector in 2010, following the nation’s efforts to rebuild its energy industry after years of conflict. Iraq, now the second-largest oil producer in OPEC, opened its fields to international partners to increase output and modernize production facilities. However, Exxon decided to exit its main investment — a stake in the West Qurna-1 oil field in southern Iraq — in early 2024, citing challenging contract terms, OPEC output limits, and political uncertainty.
Majnoon, located in southern Iraq, is among the country’s largest oil fields and has drawn consistent interest from leading global energy companies. Yet, profit-sharing terms with the Iraqi government have historically been a major point of contention. This same issue led Shell Plc to withdraw from Majnoon in 2017.
Before Exxon Mobil can begin production, the company must complete a series of technical and commercial studies and reach an agreement on a production-sharing contract, a process that could take several years. Majnoon’s development will likely depend on resolving operational and logistical challenges, including the availability of water needed for injection to maintain reservoir pressure.
The company’s potential re-entry into Iraq marks a renewed effort to expand its global portfolio amid evolving energy markets. If successful, Exxon’s collaboration with Basra Oil Co. and SOMO could strengthen Iraq’s export capacity and support development in the country’s southern oil region.
While the timeline for any production remains uncertain, the agreement would signal Exxon Mobil’s readiness to re-engage with one of the Middle East’s most significant oil-producing nations under revised terms aimed at achieving mutual benefit.
