Iraq aims to increase oil, gas production through international partnerships

Iraq aims to increase oil and gas production in the country and has signed deals with oil and gas majors in a continuing effort to attract investment and partnerships.

ExxonMobil signed a preliminary agreement with Iraq to develop the large Majnoon oil field and upgrade export infrastructure. The agreement potentially marks the oil and gas giant’s return to the Iraq upstream sector after its withdrawal in November 2023 from the West Qurna 1 project in Iraq's Basra province.

The non-binding heads of agreement, signed with the Iraq Ministry of Oil to evaluate exploration, development, and oil marketing activities, said Peter Larden, senior vice-president, ExxonMobil, in a LinkedIn post Oct. 8.

During the signing ceremony, Prime Minister Mohammed Shia al-Sudani indicated the importance of the agreement to the future of the oil sector in Iraq and the development of economic relations with the US, the Republic of Iraq Prime Minister’s office noted in a release Oct. 8.  

According to the media office, Prime Minister Al-Sudani also stressed that “the doors are open to all major international companies to contribute to the development of the oil sector." 

Preliminary development deals

Iraq’s agreement with ExxonMobil follows others aimed at accelerating the country’s oil and gas production efforts.

In August, a memorandum of understanding was signed between the Ministry of Oil and Chevron Corp. regarding the Nasiriyah project, which consists of four exploration blocks, the development of Balad oil field, along with the potential for additional producing oil fields and exploration blocks.

Chevron and Sarta production sharing contract partner Genel Energy PLC withdrew from Sarta field in the Kurdistan region of Iraq in 2023 following disappointing production performance and infrastructure challenges.

At the August signing ceremony, Prime Minister Al-Sudani “welcomed [Chevron’s] return to work in Iraq, stressing that the government has taken a different approach in dealing with major oil companies and their investments in Iraq, especially American ones,” the Prime Minister’s media office said, while praising the operator’s work “in transferring oil technology to Iraq, its community contributions, and the sound environmental policies it follows.”

In February 2025, the Iraqi government signed a preliminary agreement with bp plc to invest in oil fields in Kirkuk. The aim is rehabilitation and redevelopment of the fields, which includes Baba and Avanah domes of Kirkuk oil field and three adjacent fields (Bai Hassan, Jambur, Khabbaz) in Federal Iraq, all operated by the national oil company.