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.
Iraq could ramp up its crude oil exports by some 250,000 barrels daily as it saves this amount from local consumption with the help of several solar power projects.
Iraq expects oil exports from its Kurdistan region to resume as soon as this week following a two-year halt, after a landmark deal was reached with producers, its foreign minister said.
TotalEnergies SE and its partners have begun construction for the Ratawi field redevelopment project and a seawater supply project in Iraq, the final components of the country’s over $13 billion Gas Growth Integrated Project (GGIP).
Iraq’s state oil marketing firm is in discussions with Exxon for potential crude storage sites close to demand markets in Asia, the United States, and Europe, Bloomberg reports, citing a senior Iraqi executive.
The Common Seawater Supply Project (CSSP) is the key to unlock massive gains in oil output from Iraq. Consequently, control over the project is pivotal to gaining control over the country’s enormous oil and gas resources.
The Chinese companies are replacing Western oil and gas majors who left Iraq in search of greener pastures. CNPC took over the West Qurna 1 field last year and plans to boost its capacity to 1.2 million barrels daily by 2035. West Qurna 1 is one of the largest oil fields in the world, with reserves estimated at more than 20 billion barrels of recoverable hydrocarbons. Currently, it produces around 550,000 barrels daily.
The potential renegotiation is the latest step in the saga that started in March 2023, when Turkey closed the link after an arbitration court ordered the country to pay Iraq $1.5 billion over unauthorized exports. Numerous attempts to restart shipments have since failed – including due to disagreements between Iraq, its semi-autonomous Kurdistan region and companies operating in the area.
The original agreement, first inked in 1973, concerns the pipeline carrying oil from the semi-autonomous Iraqi region of Kurdistan to the Turkish port of Ceyhan on the Mediterranean. Flows along the Kirkuk-Ceyhan pipeline, which has a capacity for 1.6 million barrels daily, have now been suspended for two years amid a financial dispute between Ankara and Baghdad.
The Kurdistan Regional Government will supply Iraq’s state oil marketer SOMO with 230,000 barrels a day as part of a deal for Baghdad to release funds for salaries in the northern region, people familiar with the matter said. The transfer of the crude is a crucial element for an agreement between the federal and semi-autonomous administrations to restart exports through a pipeline to Turkey’s Mediterranean coast.