ExxonMobil has signed a Heads of Agreement (HOA) with Iraq’s Oil Ministry to assist in developing upstream assets, including the Majnoon oil field near Basra (southern Iraq), which has a production capacity of 240 kb/d. The agreement encompasses not only the development of Majnoon, but also initiatives to improve recovery rates at Iraqi fields and plans to modernise oil export infrastructure.
Majnoon is one of Iraq’s largest oil fields and has long attracted interest from major global oil companies. However, profit-sharing disputes with the government have frequently caused conflicts, including one that led Shell to exit the field in 2017.
This deal paves the way for ExxonMobil’s return to Iraq’s upstream sector after its departure in late 2023, following a prolonged process to sell its stake in the 470 kb/d West Qurna-1 project. Before production can begin, ExxonMobil must complete a series of commercial and technical studies and finalize an operating contract—a process that could take several years.
The agreement supports Iraq’s goal, announced in March 2025, to raise its crude production capacity to 6 mb/d by 2029, up from approximately 5 mb/d today.