Iraq has authorised the Iraqi National Oil Company to acquire ExxonMobil's 32.7% stake in the West Qurna-1 oil field. Located in southern Iraq, the West Qurna-1 oilfield, had a production capacity of 500,000 bbl/d as of 2021 and recoverable reserves of more than 20 Gbl.
Oil production dropped by 12% in 2020, reaching 206 Mt (4.2 mb/d) due to the COVID-19 pandemic. It had been previously increasing rapidly since 2010 (+8%/year) with a major increase in 2016 (+28%) that was mainly due to an increased output at fields in southern Iraq and in the Iraqi Kurdistan Region, which more than offset disrupted volumes in the north. In October 2021, the country entered into talks with international oil majors including Shell, BP, ExxonMobil, Lukoil and Eni, to help the country double its crude production capacity to 8 mb/d by 2027. In addition, Iraq aims to expand its export capacity by 50% to 6 mb/d by the end of 2024.