Iraq on Wednesday signed an agreement with the US energy company ExxonMobil to develop a major oilfield in the country's south, as Baghdad pushes to expand its hydrocarbons capacity.
The deal to develop the Majnoon oilfield marks a “significant step forward in the development of Iraq's oil sector and strengthens economic ties between Iraq and the United States,” a government statement said.
Iraqi Prime Minister Mohammed Shia Al Sudani oversaw the signing ceremony, which was also attended by senior US diplomats in Iraq.
Iraq is keen to collaborate with major oil companies around the world, particularly US-based companies, to work on key oilfields, including the Majnoon field in Basra.
“All doors are open for major international companies to develop the oil sector,” Mr Al Sudani said.
The government is “keen to attract investments in the energy sector and develop it, especially in the field of gas exploitation”, he added.
Mr Al Sudani also underscored the importance of ExxonMobil's contribution to developing the infrastructure for oil exports from the country and the company's help in diversifying Iraq's export sources.
The utilisation of the latest technologies in the oil industry by Exxon Mobil has also raised the sector's performance and boosted Iraqi hydrocarbons production, he added.
Exxon was among the first western oil explorers allowed into Iraq, Opec's second-largest crude producer, in 2010 when the nation sought to rebuild its energy industry in the aftermath of the country’s invasion, the fall of president Saddam Hussein and the years of conflict that followed.
However, Exxon decided to exit its primary investment – a stake in the West Qurna-1 oilfield in southern Iraq – early last year amid tough contractual terms, oil production caps imposed by the Opec+ group of oil producers, supply constraints and continuing political instability.
