Exxon Mobil has signed an agreement with the government of Gabon to explore for oil and gas off the coast of the central African country. The oil company recently penned a memorandum of understanding with the Gabon government, a non-binding agreement.
The agreement signifies an expansion of the U.S. oil major’s activities in Africa, in addition to its current operations in Nigeria, Angola and Mozambique.
According to an Exxon spokesperson, the company is collaborating with Gabon to explore deepwater and ultra-deepwater offshore areas for oil and gas.
Recall that in August, Exxon reached an agreement with Trinidad and Tobago to explore deepwater areas, marking the oil producer’s return to the country in more than 20 years.
Exxon Mobil made a decision to exit African nation Equatorial Guinea 3 years ago.
Recall that the company is also evaluating a new landing in Iraq after a nearly 2-year absence.
Bloomberg has reported that the deal, currently under discussion, would end the almost two-year break in the company’s operations in Iraq.
Talks are ongoing with the Iraqi Oil Ministry that will include a potential agreement that would let the company start exploration work in the giant Majnoon field in the south of the country.
The Majnoon field, located 60 kilometres from Basra, holds about 38 billion barrels of crude oil, making it one of the most valuable assets on the world energy map.
Exxon Mobil is in advanced talks with Basra Oil Company and state-owned SOMO to establish a preliminary framework for cooperation.
The discussions will not be limited to exploration rights, as Exxon is also trying to secure a favourable deal in terms of infrastructure.
The negotiations include logistical aspects like the export of crude oil and the use of storage capacity in Singapore facilities, which would extend its reach outside the Middle East.
According to Iraqi officials, ExxonMobil is among the list of candidates for infrastructure projects to enhance crude oil outflow capabilities from the south of the country.
