Two Decades Later, Exxon Mobil’s Back in Iraq to Jolt a 38-Billion-Barrel Giant Awake

Exxon Mobil Corporation (NYSE: XOM) just inked a preliminary deal with the Republic of Iraq to help revive the Majnoon oilfield… a site so massive it’s been called “the sleeping giant” of southern Iraq. For Exxon, it’s a long-awaited return to one of the world’s biggest energy stages. For Iraq, it’s another step in a comeback story that’s been two decades in the making.

Announced by Iraqi Prime Minister Mohammed Shia al-Sudani, the Heads of Agreement (HOA) lays out collaboration on exploration, production, and long-overdue infrastructure upgrades. It’s a non-binding deal for now, but one that suggests Baghdad and Exxon are ready to pick up where they left off… minus the paperwork hangovers and political gridlock that slowed things down last time.

“We are pleased to have signed an HOA with the Iraqi Oil Ministry to evaluate exploration, development, and oil marketing opportunities in Iraq,” an Exxon Mobil spokesperson said. “It’s an important step toward advancing long-term energy growth and investment.”

Located about 60 kilometers from Basra, Majnoon is the kind of oilfield that makes even OPEC executives check the math twice… 38 billion barrels in place, according to estimates. In addition, Iraq’s state oil company, SOMO, is expected to finalize a related deal with Exxon for overseas storage, likely in Singapore. In other words: Baghdad wants a direct line to Asia’s fastest-growing energy markets.

And Exxon’s not the only one getting a seat at the table. Iraq has recently struck deals with Chevron, BP, and TotalEnergies as part of a wider effort to modernize its energy sector and boost production from around 4 million barrels per day to more than 6 million by 2029. Ambitious? Definitely. Achievable? That depends on how fast Iraq can cut through the red tape.

Still, Exxon’s return gives the plan real weight… both politically and commercially. After years of war, underinvestment, and policy whiplash, Iraq’s leadership seems determined to rebrand itself as a stable, investable energy power.

“These agreements carry political weight, signaling Iraq’s intent to rebalance regional relationships and reinforce its integration with Western markets,” said Muwafaq Abbas, an oil analyst and former operations manager at Basra Oil Company.

The deal hits at a moment when Iraq’s energy machine is finally starting to hum again. Just weeks ago, Iraq struck a deal with the Kurdistan Regional Government and several international producers to resume crude exports through Turkey. The restart could add 230,000 barrels per day back into global supply… a well-timed boost as OPEC+ producers quietly battle for market share.

For Exxon Mobil, the move feels like a return to unfinished business. The company was among the first Western majors to re-enter Iraq after 2003, helping rebuild the nation’s oil sector before stepping away from the West Qurna 1 project amid disappointing returns. Two decades later, it’s back… more measured this time, but still chasing one of the biggest untapped opportunities in global energy.

About Exxon Mobil

Exxon Mobil Corporation (NYSE: XOM) is one of the world’s largest publicly traded energy and chemical companies. The company explores for, produces, and refines oil and natural gas while developing technologies to meet global energy needs with lower emissions. Through its Upstream, Product Solutions, and Low Carbon Solutions businesses, Exxon Mobil combines scale, technology, and decades of experience to deliver reliable energy for modern economies. Headquartered in Irving, Texas, Exxon Mobil operates in more than 60 countries and continues to invest in long-term projects that balance energy security, economic growth, and sustainability.

At the time of publishing this article, Stocks.News holds positions in Exxon as mentioned in the article.