U.S. energy giant ExxonMobil is reportedly exploring a return to Iraq’s oil sector, nearly two years after pulling out of the country, with plans to sign preliminary agreements for the development of the Majnoon oil field in southern Iraq.

According to Bloomberg, the proposed deal—expected to be signed in the coming days—would involve Basra Oil Company and Iraq’s state-owned State Organization for Marketing of Oil (SOMO). The discussions are said to include potential collaboration on oil exploration, export facilities, and crude marketing projects.

Located about 60 kilometers from Basra, the Majnoon field is among the world’s most resource-rich oil deposits, holding an estimated 38 billion barrels of crude.

An ExxonMobil spokesperson confirmed ongoing talks with the Iraqi oil ministry, noting that the company “routinely reviews opportunities to strengthen its global portfolio.” Iraqi officials, however, have yet to comment publicly on the reported negotiations.

The possible agreement follows Iraq’s recent efforts to rekindle partnerships with major international oil firms that had previously scaled back operations due to political and security challenges. In the last two years, the country has signed new deals with Chevron, TotalEnergies, and BP to boost production capacity and expand infrastructure.

Last month, Iraq’s state news agency reported that SOMO and Exxon were in advanced talks over securing storage capacity in Singapore, using facilities owned by the U.S. oil company—another sign of improving relations between both sides.

If finalized, Exxon’s return to Majnoon could mark a major step in Iraq’s push to attract foreign investment and revitalize its energy industry, which remains a cornerstone of the national economy.