Iraq'i government announced that the world's largest oil services company Schlumberger won a $480 million deal to drill 96 oil wells in southern Iraq for the country's Basra Oil Co. and Exxon Mobil.

Iraq plans to increase the production capacity of West Qurna-1 oilfield, which is operated by ExxonMobil.

West Qurna-1 is one of the world’s largest oil fields in the world with expected recoverable reserves of over 20 billion bbl.

In 2019 production at the oilfield reached 465,000 barrels per day, following the completion of new crude processing facilities and oil storage tanks.

Its development has been a priority given that Iraq is OPEC’s 2nd-largest producer and relies on oil exports for 95%, nearly all its state budget.

In 2018 Iraq has struck an agreement with Schumberger to drill 40 wells at the Majnoon oil field.

The company also worked on a 42-month integrated drilling services contract for 30 wells in the West Qurna oil field in Iraq.

Iraq has struggled for most of 2020 to comply with its OPEC+ quota amid the low oil price environment, the pandemic and a financial crisis gripping the country.

Following low oil prices dragged down by the coronavirus pandemic and international disputes, Iraq is showing signs of recovery, with January exports reaching 2.868 million barrels per day at $53 per barrel, according to Oil Ministry statistics.