Custom Search

By Guest Blogger. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

1. A historic volume of agreements - 48 in total

A total of 48 agreements, memoranda of understanding, cooperation agreements and partnership declarations were signed between public and private sector entities in Iraq and the United States during the five-day visit. In total, Iraq's initial agreements with US firms, spanning the energy, healthcare and technology sectors, are worth more than $60 billion.

2. Major oil and energy companies ink deals

The agreements include cooperation and partnerships involving the Iraqi ministries of oil and electricity with ExxonMobil, KBR, GE Vernova, Shell and Halliburton. Chevron also signed two additional agreements with Iraq focused on boosting oil production.

3. Iraq-Syria crude oil pipeline to be revived

Iraq and Syria signed a cooperation agreement to reconstruct the long-defunct Iraq-Syria oil pipeline, which runs from the oil-rich Kirkuk region in northern Iraq to Syria's Mediterranean port of Banias [Baniyas]. Iraq's state news agency reported that Chevron would carry out the project. The US Department of State welcomed the plan, stating that upon rehabilitation the pipeline would have an initial transport capacity of two million barrels per day.

4. Pipeline deal framed as making Hormuz "an afterthought"

US ambassador to Türkiye Tom Barrack said Iraq's latest oil pipeline agreements would lead to a programme "that will make the Strait of Hormuz an afterthought." The deals come as Baghdad seeks to move away from dependence on the Strait of Hormuz, where shipping and oil exports have been heavily disrupted due to the US-Israel war against Iran.

5. Starlink deal for satellite internet services

Iraq signed a deal with Starlink to introduce services to the country. This forms part of a broader push to attract US companies across the technology sector.

6. Oil production ambitions front and center

Al-Zaidi said Iraq seeks to increase oil production to seven million barrels per day over the next three years, up from its current output of about 4.5 million bpd. A sovereign wealth fund structured around oil exports was also discussed as a vehicle for funding future development.

7. US companies given priority across key sectors

Al-Zaidi's government said it would prioritise US companies in energy, communications, technology and development projects, with the prime minister stating his goal is to move bilateral relations "from a phase of security cooperation to a sustainable economic partnership."

8. Deals signed at a US-Iraq Business Summit

The preliminary deals were signed at a US-Iraq business summit at the US Chamber of Commerce in Washington. Al-Zaidi told attendees: "We are using an open-door policy. Everybody who has a project can come and talk to us. We will not make it difficult for anyone."

9. Corruption crackdown cited as a confidence-builder for investors

Al-Zaidi has launched a corruption crackdown, with raids yielding millions of dollars in seized assets, a signal intended to reassure US partners that Baghdad is serious about improving the business environment.

10. Strategic shift from security to economic partnership

Al-Zaidi said discussions with Trump focused on strengthening bilateral relations, expanding economic cooperation and creating opportunities for American companies to participate in development projects in Iraq, particularly in the energy sector, stressing the importance of building commercial ties rather than focusing solely on military cooperation.

By John Lee.

Iraq has signed 48 agreements, memoranda of understanding (MoUs) and partnership declarations with US public and private sector entities spanning the oil, electricity, technology, finance and agriculture sectors.

According to Iraq's Prime Minister's Office (PMO), the signing ceremony took place on Friday evening Baghdad time under the auspices of Prime Minister Ali al-Zaidi.

Companies named as signatories include:

• ExxonMobil
• KBR
• GE Vernova
• Shell
• Halliburton
• Starlink (agreement with the Communications and Media Commission)
• Kizlight Technology
• PepsiCo
• UOP
• Polaris
• Association of Energy Engineers (AEE)
• PPTA
• Frito-Lay (two agreements for agricultural sector development)

The agreements also cover pipeline projects to transport oil to Banias on the Mediterranean coast, education partnerships, and private sector cooperation in pharmaceuticals supply and manufacturing.

(Source: Prime Minister's Office)

By John Lee.

Iraq's Prime Minister Ali al-Zaidi has met with the chief executive of ExxonMobil, Darren Woods, and the company's board at its headquarters in Houston to discuss expanding oil production and export capacity, and potential partnership in refinery development.

According to the Prime Minister's Office, al-Zaidi outlined the government's intention to develop Iraq's oil production and export sectors, raise refining capacity, and bring an end to associated gas flaring.

He invited ExxonMobil to contribute to these plans, emphasising the need for swift action and long-term investment. Al-Zaidi also stressed the importance of eliminating Iraq's dependence on imported gas for power generation and capturing all associated gas. The Ministers of Oil and Electricity attended the meeting.

Woods presented an overview of ExxonMobil's activities and capabilities in Iraq and the region, and expressed the company's interest in closer cooperation, including attention to environmental requirements and pollution reduction.

(Source: Prime Minister's Office)

By John Lee.

Turkish Petroleum (TPAO) and BP have signed a memorandum of understanding (MoU) on strategic cooperation in oil and natural gas.

The agreement was signed by TPAO General Manager Cem Erdem and BP Head of Global Oil and Gas Business Development Andrew McAuslan, in the presence of Turkey's Minister of Energy and Natural Resources Alparslan Bayraktar.

The MoU establishes a framework for cooperation covering:

• Development of oil and natural gas fields
• Assessment of areas with exploration potential
• Collaboration on oil export capacity
• Natural gas transport infrastructure at international and regional levels

The agreement follows recent exploration cooperation deals signed by TPAO with ExxonMobil on 8 January and Chevron on 5 February.

According to Minister Bayraktar, priority under the new framework will be given to potential cooperation in Iraq, particularly in Iraqi oil and gas fields.

He added that TPAO aims to reach production of approximately 500,000 barrels of oil and natural gas by 2028, with a longer-term target of increasing output to 1 million barrels.

Last year, BP signed a contract to develop four Kirkuk oilfields.

(Source: Turkish Ministry of Energy)

From Amwaj Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Will return of US oil giant herald western re-engagement with Iraq's energy sector?

ExxonMobil has signed a preliminary agreement with Baghdad to develop the supergiant Majnoon oil field.

The move signals the company's desire to return to Iraq after an almost two-year absence. Amid the fanfare, observers suggest that the accord marks renewed western interest in the Iraqi energy sector, and a potential strategic shift away from growing Chinese influence.

Yet, some critics warn that the emerging deal may prove untenable in the long term given Iraq's unstable investment dynamic. .

The full article can be viewed here.

By John Lee.

Deputy Prime Minister for Energy Affairs and Minister of Oil, Engineer Hayan Abdul Ghani Al-Sawad, inaugurated on Sunday the OT2 and OT3 oil processing facilities at the West Qurna-1 field, with a combined capacity of 210,000 barrels per day.

The Minister explained that the project includes the construction of two new crude oil processing plants, each with a production capacity of 105,000 barrels per day. He praised the efforts of the field's operating entity, which includes the China Petroleum Engineering & Construction Corporation (CPECC) and the Basra Oil Company (BOC), for completing the project as planned to enhance national production capacity.

Abdul Ghani emphasised that this achievement reflects the government's and the Ministry of Oil's commitment to the optimal investment of national resources, strengthening Iraq's production capabilities, supporting the national economy, and contributing to sustainable development.

The ceremony was attended by the Deputy Minister for Extraction Affairs, Bassem Mohammed Khudair; Director General of the Basra Oil Company, Bassem Abdul Karim; Chinese Consul in Basra, Chen Bishong; Deputy Director of CPECC, Jiang Feng; and Director General of WQIFOD, Ni Qi Qiuan, along with senior officials from the Ministry of Oil and Basra Oil Company.

West Qurna 1 was awarded to ExxonMobil during Iraq's first licensing round in 2010. However, ExxonMobil requested to transfer its stake to PetroChina, a process completed after negotiations and approval in 2023.

(Source: Ministry of Oil)

By John Lee.

If anyone doubts the importance of last week's agreement for US oil major ExxonMobil to return to Iraq, may we suggest reading the following article from Simon Watkins in OilPrice:

What ExxonMobil's Comeback in Iraq Really Means.

The author describes it as "perhaps the most significant of the recent deals between firms from the West and Baghdad," underpinned by a stronger U.S.-Iraq alignment involving high-level assurances on governance, transparency, and legal protections.

Click here to read the full article.

By John Lee.

US energy major ExxonMobil has signed a Heads of Agreement (HOA) with Iraq's Ministry of Oil.

A statement today (Wednesday) from the Prime Minister's Office gave few details, but the agreement is thought to involve the Iraq's giant Majnoon field.

During a meeting with ExxonMobil Vice President Peter Larden and the accompanying delegation, attended by the U.S. Chargé d'Affaires in Iraq, Prime Minister Mohammed Shia' Al-Sudani described the deal as an important step for Iraq's oil sector and for strengthening economic relations with the United States.

Al-Sudani reaffirmed Iraq's openness to major global companies, particularly American firms, to invest in key oil fields such as Majnoon in Basra. He emphasised the government's commitment to attracting investment and expanding cooperation in oil and gas development.

The Prime Minister also highlighted the importance of ExxonMobil's role in upgrading Iraq's oil export infrastructure, diversifying export routes, and introducing advanced technologies to boost production and efficiency.

Mr Larden expressed appreciation for the government's efforts to deepen cooperation and congratulated Iraq on its National Day, praising the country's progress across multiple sectors.

In 2023, Iraqi authorities approved a final settlement with ExxonMobil, facilitating its exit from the West Qurna oilfield project.

(Source: PMO)

By John Lee.

Iraq's State Oil Marketing Organization (SOMO) announced that it has reached advanced stages of understanding with America's ExxonMobil to secure storage capacity in Singapore, alongside negotiations on refining and profit-sharing opportunities in the Asian market.

SOMO Director General, Ali Nizar Al-Shatri (pictured), told state-owned Iraqi News Agency (INA) that the company is pursuing agreements with ExxonMobil to utilise storage tanks in Singapore and other Asian locations, and is also exploring refining capacity and joint trading of crude oil and petroleum products.

He stressed that SOMO's strategy focuses on maximising Iraq's financial revenues and reinforcing its global oil position, particularly in Asia, which he described as the only market witnessing substantial growth in refining capacity and demand.

Al-Shatri highlighted the long-standing relationship between Iraq and American companies, noting that ExxonMobil has been a partner for more than five decades, supplying Iraqi crude oil to refineries across the United States, Asia, and Europe. He said the expansion of such partnerships helps balance Iraq's oil trade between American, European, and Asian markets.

(Source: INA)

By John Lee.

The China Huanqiu Contracting & Engineering Company (HQC), a subsidiary of the China National Petroleum Corporation (CNPC), has reportedly signed a Project Management Consultancy (PMC) contract for the West Qurna-1 oilfield.

According to sina.com.cn, this is CNPC's largest overseas service contract since 2020.

In January 2024, PetroChina, also a subsidiary of CNPC, took over from ExxonMobil as main operator, following ExxonMobil's divestment of its remain interest in the field to Basra Oil Company (BOC) and Pertamina.

(Source: sina.com.cn)