ExxonMobil, an American energy giant, is exploring the possibility of returning to operations in Iraq after nearly two years’ hiatus by signing preliminary agreements to begin work on the Majnoon oil field in southern Iraq.

The oil field, located about 60 kilometers north of Basra, is recognised as one of the world’s most resource-rich fields, containing an estimated 38 billion barrels of oil.

ExxonMobil is expected to finalise a Heads of  Agreement (HoA) with Basra Oil and Iraq’s State Organisation for Marketing of Oil (SOMO) within the next few days. An ExxonMobil spokesperson confirmed to Reuters that the company entered negotiations with the Iraqi Oil Ministry to identify suitable opportunities.

The prospective HoA is likely to cover discussions about export facilities and potential oil marketing ventures in southern Iraq.

Notably, SOMO engaged in discussions with ExxonMobil in September, seeking a deal for additional storage space in Singapore in addition to other agreements to strengthen storage and refining activities in Asia.

In recent months, Iraq has entered into multiple agreements with energy companies, including bp, Schlumberger, Chevron, and Halliburton, to increase its oil production capacity.