Exxon eyes Iraq re-entry to explore Majnoon oil field: Reports

Oil major Exxon Mobil is considering re-entering Iraq after a nearly two-year hiatus by signing agreements that would lay the groundwork to explore the country’s giant Majnoon field, Bloomberg News reported, citing people familiar with the matter.

Majnoon, located 60 km (37 miles) from Basra in southern Iraq, is one of the richest oil fields in the world with an estimated 38 billion barrels in place.

Exxon plans to sign a heads of agreement with Basra Oil and Iraq’s state oil company SOMO in the coming days, the report said on Tuesday.

“Exxon Mobil is in discussions with the Iraqi oil ministry as we routinely look at opportunities to optimize our advantaged portfolio,” an ExxonMobil spokesperson told Reuters.

Basra, SOMO, and the Iraqi Embassy in Washington D.C. did not immediately respond to Reuters requests for comment.

The potential deal is also expected to include discussions regarding export infrastructure and possible oil marketing projects in southern Iraq, the report said.

Iraqi state news agency INA last month reported that SOMO was in advanced talks with Exxon over a possible agreement to secure storage capacity in Singapore using tanks owned by the US oil major.

In the past two years, Iraq has signed agreements with several oil firms that had previously retreated from the country, including Chevron, France’s TotalEnergies and UK oil major BP.