Iraq signs deal with ExxonMobil to redevelop super-giant oilfield

BAGHDAD, October 8, 2025 – Iraq has signed a non-binding agreement with ExxonMobil to help develop the Majnoon super-giant oilfield and upgrade export infrastructure, Reuters reported on Wednesday, citing Prime Minister Mohammed Shia al-Sudani.

The agreement includes profit-sharing covering crude and refined products and plans to enhance Iraq’s southern export infrastructure, according to four sources cited by Reuters.

Iraq’s state oil marketer SOMO will also sign a separate deal with ExxonMobil to secure storage capacity in the Asian market, the report added.

In September, Iraq’s INA agency reported SOMO was in advanced talks with ExxonMobil to use the US firm’s storage tanks in Singapore.

The deal marks ExxonMobil’s return to Iraq two years after it exited the West Qurna 1 oilfield, transferring operatorship to PetroChina due to what sources described as poor returns.

ExxonMobil was among the first Western oil companies to re-enter Iraq post-2003 but later pulled out of various projects in both federal Iraq and the Kurdistan Region, citing unfavourable results and strained relations with Baghdad.

In Iraq, ExxonMobil previously held a 60% interest in the West Qurna 1 oilfield under a redevelopment contract and led operations alongside the South Oil Company until its 2024 exit, when it transferred operatorship to PetroChina. The handover also saw Iraq’s Basra Oil Company acquire 22.7% of ExxonMobil’s stake and Indonesia’s Pertamina purchase the remaining 10%, positioning PetroChina as the lead operator. The company’s current re-entry centres on the Majnoon oilfield and southern export infrastructure, alongside a deal to secure storage capacity in Asia, particularly in Singapore.

Crude oil export revenues remain the cornerstone of Iraq’s economy, accounting for an estimated 90% of total government revenues in 2023. Although crude oil production partially recovered in 2024, lower global oil prices and supply disruptions in northern Iraq led to a slight decline in overall export revenue despite higher refining runs, according to the U.S. Energy Information Administration (EIA) .

The Iraqi government has recently signed new deals with former partners such as Chevron, TotalEnergies and BP to revive its energy sector after years of underinvestment and instability.

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