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Key Points

Iraq has taken a significant step in developing its energy infrastructure by signing a preliminary agreement with ExxonMobil. The deal focuses on key oil fields, particularly the massive Majnoon oilfield near Basra. Prime Minister al-Sudani emphasized Iraq's openness to international energy companies and their potential contributions. This strategic partnership could help Iraq diversify and strengthen its economy, which currently relies heavily on oil exports.

Key Points: ExxonMobil Iraq Energy Deal Boosts Oil Sector Development

  • Iraq secures major energy collaboration with US oil giant ExxonMobil
  • Majnoon oilfield identified as primary development target
  • PM al-Sudani commits to international energy sector investments
  • Deal aims to strengthen Iraq's crucial oil export infrastructure
1 min read

Iraq signs preliminary deal with US company on developing energy sector

Iraq signs strategic agreement with ExxonMobil to develop key oil fields, focusing on Majnoon, attracting international investment in energy sector.

"Iraq's doors are open to all major international companies - Mohammed Shia' al-Sudani, Iraqi Prime Minister"

Baghdad, Oct 8

The Iraqi Oil Ministry on Wednesday signed a Heads of Agreement with U.S. energy company ExxonMobil to develop Iraq's energy sector.

According to a statement by the media office of Iraqi Prime Minister Mohammed Shia' al-Sudani, the agreement represents an understanding paving the way for ExxonMobil to operate in key fields, with Majnoon likely being the most prominent or primary target, Xinhua news agency reported.

Al-Sudani expressed his government's commitment to cooperating with major oil companies to operate in key oil fields, including the Majnoon field in Basra, and attracting investments in the energy sector, especially in gas development projects.

"Iraq's doors are open to all major international companies wishing to contribute to the development of the oil sector," he said.

For his part, ExxonMobil's senior vice president Peter Larden expressed gratitude for Iraq's efforts to strengthen bilateral cooperation and praised the progress across various sectors in Iraq, the statement added.

Iraq's economy depends heavily on crude oil exports, which make up roughly 90 per cent of the country's revenues. Located about 60 km from Basra in southern Iraq, Majnoon is one of the largest oilfields in the world.

- IANS

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Reader Comments

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Priya S
Interesting development! Iraq is our second largest oil supplier after Saudi Arabia. Any stability in their energy sector directly impacts our fuel prices. Hope this brings more consistency in supplies to India. 🙏
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Arjun K
While foreign investment is good, I hope Iraq maintains control over their resources. We've seen what happens when countries become too dependent on foreign companies. Balance is key.
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Sarah B
As someone working in energy sector, this is significant. Majnoon field is massive - proper development could add substantial supply to global markets. Good for energy security worldwide including India.
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Vikram M
Hope this doesn't affect our existing oil deals with Iraq. Indian companies have good relations there and we depend heavily on their crude. Fingers crossed this works out for everyone.
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Michael C
Respectfully, I'm concerned about the environmental impact. These massive oil fields need sustainable development practices. Hope ExxonMobil brings their best environmental standards to Iraq.

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