ExxonMobil Signs Deal to Develop Iraq's Massive Majnoon Field

Exxon Mobil Corporation XOM has signed preliminary agreements for the exploration and development of the Majnoon oil field in Iraq. This marks the energy firm’s re-entry into Iraq after two years since it exited the West Qurna project. Iraq holds some of the largest oil reserves in the world. The country currently produces nearly 4 million barrels per day. By 2029, Iraq plans to raise production levels to 6 million barrels per day.Details of Majnoon Oil Field DealThe vast Majnoon oil field, located toward the south of Iraq, around 37 miles from Basra, is estimated to hold 38 billion barrels of oil. Per an announcement by Iraq’s prime minister, Exxon Mobil intends to sign heads of agreements with the Basra Oil Company and SOMO, the oil marketing company in Iraq, to develop the massive oilfield and boost the country’s export capacity. The agreement includes sharing profits on the sale of crude oil and refined products.Furthermore, the deal includes discussions regarding potential oil marketing projects in southern Iraq. According to Iraq’s state news agency INA, SOMO and ExxonMobil are also in discussions for SOMO to secure additional storage capacity in Singapore to enhance access to Asia markets.ExxonMobil’s Past Involvement & Exit From IraqExxonMobil, the U.S.-based oil and gas major, was one of the first Western oil companies to enter Iraq in 2010 to strengthen the country’s energy sector after the downfall of president Saddam Hussein and the years of conflict that followed.However, the company later pulled back from exploration projects in Basra and Kurdistan, citing weak returns. The company also handed over its stake in the West Qurna 1 oilfield in southern Iraq to PetroChina, which later became the operator of the field.New Agreements Signed With Global Oil MajorsIn recent years, Iraq has signed several agreements with other oil majors that had previously exited the country, including U.S. oil major Chevron and the U.K.-based energy giant BP.The Majnoon field, one of the largest oil fields in the world, has attracted the interest of several oil companies worldwide. However, political turmoil and unfavorable investment terms in the country, including profit sharing with the government, have hampered development progress.In its recent arrangements with Chevron and BP, Iraq has allegedly offered more favorable investment terms. These non-binding arrangements are intended to boost oil and gas production in the country.XOM’s Zacks Rank & Key PicksThe company currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the energy sector are Cheniere Energy Inc. LNG, Oceaneering International OII and Galp Energia SGPS SA GLPEY. Cheniere Energy sports a Zacks Rank #1 (Strong Buy) at present, and Oceaneering International and Galp Energia carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Cheniere Energy is involved in LNG-related businesses, which include LNG terminals and natural gas marketing. The company has reached a milestone with the first production from the first LNG train of its Corpus Christi Stage 3 Liquefaction Project. The project, which includes seven midscale LNG trains, aims to expand the production capacity of the Corpus Christi Liquefaction facility. This expansion is expected to enhance Cheniere's position in the rapidly growing global LNG market, enabling it to meet the rising demand for LNG in the United States and internationally.Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and business opportunities, ensuring steady revenue growth.Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold 10 billion barrels of oil. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report Cheniere Energy, Inc. (LNG): Free Stock Analysis Report Galp Energia SGPS SA (GLPEY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks