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]

Core Insights - Exxon Mobil has signed an agreement with Iraq to develop the Majnoon oilfield and enhance oil export infrastructure, marking its return to the country after a two-year absence [1][2] - The agreement includes a profit-sharing arrangement for crude oil and refined products, as well as plans to upgrade Iraq's oil export infrastructure [2] - Iraq's state oil company SOMO will also collaborate with Exxon to secure storage capacity in the Asian market [2][3] Group 1 - Iraq aims to attract Western oil majors to increase oil output, which has been limited by years of conflict and corruption [1] - The Iraqi government has previously signed agreements with other oil majors like Chevron, TotalEnergies, and BP, who had exited the country [3][4] - Exxon was initially involved in Iraq post-2003 invasion but exited due to poor returns and exploration results [4][5] Group 2 - The agreement with Exxon is part of Iraq's broader strategy to resume crude exports through Turkey, which were suspended in 2023, potentially returning up to 230,000 barrels per day to international markets [5][6] - The collaboration with Exxon is expected to enhance Iraq's oil export capabilities at a time when OPEC+ countries are increasing output to capture market share [6]