Leading company in the global energy sector, ExxonMobil, is 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.
ExxonMobil 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.
ExxonMobil’s return is happening at a time when Iraq is trying to diversify its collaborations after the exit of other companies like BP, Chevron and TotalEnergies.
The energy company’s potential incorporation in the Majnoon field will trigger a turning point in the Baghdad government’s strategy, which is trying to attract large multinationals once again after years of contractual issues.
The reopening of channels with Western companies signifies a period of greater stability and cooperation in Iraq’s energy sector.
As the preliminary agreements are being discussed, Exxon is set to regain positions in the Iraqi crude value chain, boosting its overall presence in the Middle East.
The geopolitical and commercial implications of this deal would surely be huge for the global energy balance.
