Iraq signs deal with Exxon to help develop large oilfield

Core Insights - Exxon Mobil has signed a non-binding agreement with Iraq to develop the Majnoon oilfield and expand oil exports, marking its return to the country after a two-year absence [1][4] - Iraq aims to increase its oil production from approximately 4 million barrels per day (bpd) to over 6 million bpd by 2029, despite facing challenges such as bureaucracy and corruption [2] - The Majnoon oilfield is one of the largest globally, with an estimated 38 billion barrels of oil in place, reflecting Iraq's efforts to modernize its energy sector and improve relations with the U.S. [3] Agreement Details - The agreement includes a profit-sharing arrangement for crude oil and refined products, as well as plans to upgrade Iraq's oil export infrastructure [5] - Iraq's state oil company, SOMO, will also collaborate with Exxon to secure storage capacity in the Asian market, potentially utilizing Exxon's facilities in Singapore [6] Political and Economic Context - The deals with Exxon and other oil companies signal Iraq's intention to rebalance regional ties and enhance integration with Western markets [4] - The Iraqi government is actively seeking to attract foreign investment in its oil sector to boost production and exports [2][3]