Exxon is considering a return to Iraq after leaving the country two years ago, Bloomberg reported, citing an unnamed source who said Exxon was interested in developing the massive Majnoon field.
The Majnoon field has estimated reserves of 38 billion barrels, which makes it one of the biggest in the world. According to the companies currently involved in work in the field, additional seismic surveys could uncover more reserves at the field.
Exxon confirmed the information in general, telling Bloomberg in a statement that “Exxon Mobil is in discussions with the Iraqi Oil Ministry as we routinely look at opportunities to optimize our advantaged portfolio.” Per the report, a deal could be sealed within days and involve, besides field development, construction of export infrastructure and “potential oil marketing projects”.
Reports that the U.S. supermajors were willing to return to OPEC’s number-two producer emerged earlier this year, with officials from the Iraqi oil ministry saying the companies were in talks with the government on the details of that return.
“ExxonMobil has conveyed its willingness to return to Iraq,” one undersecretary from the oil ministry said in July. “The Company is currently in a stage of negotiations with Iraq for a new opportunity in the country’s oilfields. These moves are a positive indication of growing interest in Iraq’s oil industry by the US and other companies,” Bassim Khudair said at the time.
The U.S. supermajors’ potential return follows the return—or expansion—of European Big Oil, including BP and TotalEnergies.
A more recent report, from Bloomberg again, said Exxon was in negotiations with Iraqi SOMO for the construction of crude oil storage facilities closer to demand hubs in Asia, the U.S., and Europe. The Iraqi oil marketing company has been looking for opportunities to set up overseas storage capacity for years.
By Irina Slav for Oilprice.com