Two years after exiting Iraq, ExxonMobil is returning, signing a Heads of Agreement with Iraq’s Ministry of Oil to help develop the giant Majnoon oil field in Basra and support expansion of the country’s oil export infrastructure, including possible storage capacity in Asia.
The nonbinding HOA was inked on 8 October in Baghdad with Majnoon’s operator, the state-owned Basra Oil Company (BOC), and the State Oil Marketing Organization (SOMO). The HOA covers exploration, development, and oil marketing opportunities, according to a Reuters report on Iraqi Prime Minister Mohammed Shia al-Sudani announcement of the deal.
ExxonMobil left Iraq in January 2024 when it handed operatorship of the West Qurna 1 oil field over to PetroChina (32.7%), which partners today with BOC (22.7%), Indonesia’s Pertamina (20%), Japan’s Itochu (19.6%), and Iraqi Oil Exploration Company (5%).
Like Majnoon with reserves estimated at 38 billion bbl of oil in place, West Qurna is also one of Iraq’s (and the world’s) largest oil fields. Russia’s Lukoil operates the West Qurna-2 development with a 75% stake, while the Iraqi state-owned North Oil Company (NOC) controls 25%.
New Business Terms Lure Back Major Players
ExxonMobil’s return to Iraq follows other major announcements this year involving BP, Chevron, and TotalEnergies as Baghdad looks to boost oil production to over 6 million B/D by 2029 from the current 4 million B/D by offering more favorable investment terms to international players, according to the state’s news agency INA, which quoted Deputy Oil Minister Basim Mohammed Khudair in March.
Global research firm Wood Mackenzie (Woodmac) wrote in a website post in June that “Iraq is (also) accelerating efforts to monetize its massive gas resources … with a wave of EPC contract awards and major upstream investments …”
“While associated gas capture remains the priority, new nonassociated gas projects, swap agreements, and emerging LNG import plans are reshaping the country’s gas supply outlook.” Woodmac added that “gas hubs and new nonassociated fields could push output beyond 4 Bcf/D.”
Among the major announcements made so far in 2025:
January: Iraq’s state news agency announced the discovery of a new oil field in the southern East Baghdad group that may add 2 billion bbl of medium and light crude to the country’s oil reserves. State-owned Midland Oil Co. reported the find, made in collaboration with EBS (a local subsidiary acting for China’s ZhenHua Oil in Iraq) after well tests projected output of 5,000 B/D.
February: BP agreed to invest up to $25 billion to rehabilitate several large oil and gas fields in Kirkuk including the Baba and Avanah domes of the Kirkuk oil field, as well as the Bai Hassan, Jambur, and Khabbaz fields, operated by NOC, as reported in Arabian Gulf Business Insight.
July: KBR announced a 2-year renewal of its engineering, procurement, and construction management (EPCM) contract with BOC for Majnoon. KBR has held the contract since 2018 for comprehensive EPCM services to help BOC sustain the oil field’s forecast production capacity, enhance operational efficiency, maximize local content, and drive continued safety improvements.
August: Chevron signed an agreement with the Iraqi Ministry of Oil to develop the Nassiriya Project, which includes four exploration blocks in Dhi Qar province, the Balad oil field north of Baghdad, and other producing fields. The agreement was widely reported to target initial production of about 600,000 B/D within the first 7 years.
September: TotalEnergies greenlit full-field development of the Ratawi oil field in southern Iraq and construction of a related seawater-supply facility for well-pressure maintenance. The project marks the final phase of Baghdad’s $27-billion Gas Growth Integrated Project, aimed at boosting electricity generation with captured flare gas.
Woodmac noted that Iraq is the world's sixth-largest oil producer with a capacity of around 5 million B/D. Its production capacity grew from 2.4 million B/D in 2010 to 5 million B/D in 2019, due to the involvement of international oil companies in the giant and super-giant southern oil fields (Rumaila, West Qurna 1, West Qurna 2, Zubair, and Halfaya). In July 2025, the Ministry of Oil estimated Iraq’s reserves at 145 billion bbl of oil and 132 Tcf of gas.
