Iraq Set to Welcome ExxonMobil Back to Oilfields Amid Growing Foreign Interest

ExxonMobil is reportedly negotiating with Iraq to return to the country's oilfields, just a year after ceasing operations at the West Qurna 1 oilfield. The company is exploring new opportunities and Iraq is seeking foreign investment to increase its crude output capacity by 50% to six million barrels per day by 2028. ExxonMobil had previously withdrawn from the Pirman gas block in Kurdistan and the West Qurna 1 oilfield.

ExxonMobil, the world’s second-largest oil company, is reportedly in negotiations with Iraq to return to the country’s oilfields, just a year after ceasing operations at the West Qurna 1 oilfield. This development comes as Iraq seeks foreign investment to boost its crude output capacity by 50% to six million barrels per day by 2028 [1].

The company’s decision to exit the West Qurna 1 oilfield, one of the world’s largest oil reservoirs with over 20 billion barrels of proven crude deposits and a production rate of nearly 550,000 barrels per day, followed its earlier departure from the Pirman gas block in Kurdistan [2]. ExxonMobil’s withdrawal was part of its strategy to focus on more profitable operations, but the company is now exploring new opportunities in Iraq.

Iraq’s Oil Ministry Undersecretary Bassim Khudair has confirmed that ExxonMobil has conveyed its willingness to return to the country. The company is currently in negotiations for a new opportunity in Iraq’s oilfields, indicating a growing interest from the US and other international companies in the Iraqi oil industry [1].

Concurrently, discussions are ongoing with Chevron for development contracts in the Southern Nasiriyah oilfield and the Balad field in the North-Central Saladin governorate. Iraq is actively seeking foreign investment to achieve its goal of increasing crude output capacity and reserves. The country aims to boost its reserves from approximately 145 billion barrels to over 160 billion barrels through various development projects [1].

In the past two years, Iraq has awarded nearly 30 contracts to companies such as TotalEnergies, BP, and various Chinese operators in its fifth and sixth oil licensing rounds, with plans for another round this year. Recently, US-based HKN was awarded a contract to develop the Hamrin oilfield in the Northern Saladin governorate, with the goal of more than doubling its production [1].

The State Oil Company of Azerbaijan Republic has also entered into new agreements with ExxonMobil and BP for oil and gas exploration, aiming to maintain Azerbaijan’s oil output at around 582,000 barrels per day for the next five years with the support of Western energy investments [2].

Iraq’s efforts to attract foreign investment are part of its post-conflict plans to expand crude output capacity. The country’s oil sector remains a key driver of its economy, and the return of major international players like ExxonMobil could significantly boost its production and reserves.

References:
[1] https://www.offshore-technology.com/news/exxonmobil-negotiating-return-iraq-oilfields/
[2] https://www.zawya.com/projects/oil-and-gas/exxonmobil-seeks-to-return-to-iraqs-oilfields-j1elzdxm