Iraq signs agreement with ExxonMobil for Majnoon oilfield development

Core Insights - ExxonMobil has reached a non-binding agreement with the Iraqi Government to assist in the development of the Majnoon oilfield and enhance oil exports [1][4] - Iraq aims to increase its oil output significantly, targeting more than six million barrels per day by 2029, up from the current production of around 4 million barrels per day [2] - The Majnoon oilfield is one of the largest globally, with an estimated 38 billion barrels of oil in place [3] Group 1: Agreement Details - The agreement with Exxon includes a profit-sharing arrangement for crude oil and refined products [3] - Plans are in place to enhance Iraq's oil export infrastructure in the southern region [3] - The agreement aims to secure storage capacity in the Asian market, potentially leveraging Exxon's facilities in Singapore [4] Group 2: Political and Market Context - The agreement reflects Iraqi officials' push to modernize the energy sector and improve relations with Washington [4] - Recent deals with other oil companies like Chevron, bp, and TotalEnergies indicate Iraq's strategy to offer more attractive terms to foreign investors [2] - The deals carry political weight, signaling Baghdad's intent to rebalance regional ties and deepen integration with Western markets [4] Group 3: Historical Context - Exxon previously entered Iraq after the 2003 US invasion but abandoned the West Qurna project due to unsatisfactory returns [4] - The company also attempted to develop fields in the Kurdistan region but withdrew due to poor exploration results [5] - Following its departure from the West Qurna 1 oilfield, Exxon transferred its stake and operatorship to PetroChina [5]