Iraqi government signs deal with ExxonMobil to develop major oilfield

The American oil and gas giant ExxonMobil has signed an agreement with the government of Iraq to assist in developing the Majnoon oil field and expand the country’s oil export infrastructure.

This was announced by Iraqi Prime Minister Mohammed Shia al-Sudani, Caliber.Az reports citing his office's announcement.

While details of the deal have not been officially disclosed yet, Reuters reported that the agreement includes a mechanism for sharing profits from oil extraction and processing, as well as plans to modernise export infrastructure in southern Iraq, citing sources.

In addition, the state-owned oil company SOMO intends to sign a separate agreement with ExxonMobil for the use of storage facilities.

Majnoon, which is located approx. 60 kilometres from Basra in southern Iraq, is one of the world’s largest oil fields, holding reserves estimated at around 38 billion barrels.

By Nazrin Sadigova