ExxonMobil has returned to Iraq, signaling renewed confidence in the country’s oil sector. The US oil giant signed an initial agreement with Iraq’s government to explore opportunities in key oil fields. This deal highlights ExxonMobil’s commitment to Iraq and reinforces the country’s importance as a major energy hub.
Iraq’s Prime Minister Shia Al-Sudani attended the signing and called the agreement “an important step for the future of Iraq oil sector.” He emphasized that the government will collaborate with major oil companies, particularly American firms, to develop fields such as Majnoon in southern Iraq. The Majnoon oil field has long attracted global investors, and ExxonMobil’s return shows strong faith in its potential.
ExxonMobil exited Iraq in 2024 after leaving the West Qurna-1 field due to low returns. The field was later operated by a Chinese company. Now, ExxonMobil aims to modernize Iraq’s oil export infrastructure, diversify export routes, and adopt advanced technologies to increase production efficiency. These efforts are central to Iraq’s strategy to maximize revenue and boost its global energy influence.
The heads of agreement (HoA) with Iraq’s Oil Ministry and Basra Oil Company set the stage for detailed negotiations, though officials note that finalizing the deal may take time. Iraq’s State Oil Marketing Organization is also discussing storage solutions in Singapore, further integrating ExxonMobil into Iraq’s global oil operations.
ExxonMobil’s return comes as Iraq exports 3.4 million barrels per day, with crude oil sales accounting for 90 percent of national revenues. The deal underscores Iraq’s reliance on foreign investment to enhance production capacity and optimize revenue streams. Analysts see this move as a clear sign that Iraq is strengthening US ties and attracting leading global energy companies.
Overall, ExxonMobil’s engagement demonstrates Iraq’s strategic role in the global oil market and its potential for long-term growth. With modern technologies and investment, Iraq’s oil sector may expand production and reinforce economic stability.