Baghdad, Iraq – ExxonMobil (XOM.N) is poised to significantly expand its footprint in the Middle East energy sector. Sources tell Market Insider that the U.S. energy giant and Iraq are scheduled to sign a comprehensive agreement on Wednesday regarding the massive Majnoon oil field in the country’s south.
According to three high-ranking Iraqi officials with direct knowledge of the negotiations, the deal will see ExxonMobil take on the critical responsibilities of managing, developing, and operating the prolific Majnoon field.
Located near Basra, Majnoon is one of Iraq’s largest oil reservoirs, holding substantial reserves that are vital to the nation’s ambitious production targets. This agreement signals a major vote of confidence in Iraq’s energy future and the stability of its investment climate.
Crucially, the scope of this partnership extends well beyond field operations. The official sources revealed that the agreement encompasses several other key strategic components:
- Export Infrastructure Upgrade: The deal includes provisions for upgrading Iraq’s crucial oil export infrastructure in the southern region. Modernizing these facilities is essential for increasing export capacity and improving efficiency, directly impacting Iraq’s ability to supply the global market.
- Profit Sharing Trading Agreement: Perhaps most notably, the partnership will feature a profit-sharing agreement covering both crude oil and refined products trading. This indicates a deeper and more integrated financial relationship, allowing ExxonMobil to participate in the value chain beyond just raw production and offering Iraq a structure to share in the trading profits.
The successful signing of this agreement on Wednesday would mark a major development for both parties. For Iraq, it secures world-class expertise and investment to maximize output from a flagship asset, along with much-needed infrastructure upgrades. For ExxonMobil, it cements a pivotal role in one of the world’s most hydrocarbon-rich regions and provides a strategic long-term source of oil production and trading revenue.
Market Insider will continue to track developments on this story.
