ExxonMobil is negotiating a new profit-sharing arrangement with the Iraqi government as part of its plan to expand operations in the country’s vital oil sector. CEO Darren Woods confirmed that discussions are progressing in line with international industry norms, reflecting the company’s renewed engagement with Iraq.
Last month, ExxonMobil signed an agreement to support the development of the massive Majnoon oilfield and expand Iraq’s crude export capacity. The deal marks the US energy giant’s return to Iraq after a two-year absence, signaling revived investor confidence in the country’s energy market.
At the ADIPEC meeting in Abu Dhabi, Woods told Reuters that ExxonMobil still must finalize the development project’s structure, including profit-sharing compensation mechanisms. He emphasized that the company aims to ensure transparency and fairness while aligning the agreement with global standards for oilfield partnerships.
According to Iraq’s Oil Ministry, the collaboration with ExxonMobil will enhance field development, improve export infrastructure, and introduce advanced energy technologies. The project is expected to boost production efficiency and create new opportunities for local industries supporting Iraq’s oil supply chain.
Prime Minister Mohammed Shia al-Sudani welcomed the deal, describing it as part of Iraq’s broader strategy to deepen cooperation with major international oil companies. He said the government aims to modernize export systems, increase gas production, and secure reliable energy supplies to meet growing domestic demand.
ExxonMobil’s renewed engagement also follows significant changes in Iraq’s upstream sector. After ExxonMobil exited the West Qurna-1 field in early 2024, PetroChina became the primary operator. The American company’s return, however, highlights Iraq’s continuing appeal to global investors seeking new production opportunities amid shifting energy dynamics.
Analysts believe the upcoming profit-sharing agreement will reinforce Iraq’s position as a leading regional oil producer while giving ExxonMobil a stronger foothold in one of the world’s most resource-rich markets.