Iraq Partners With U.S. Firms to Expand Oil Production

The Government of Iraq is executing a strategy to increase oil production capacity and reduce reliance on Iranian imports through new partnerships with U.S. and Qatari firms. The Iraqi cabinet approved the Basra Oil Company's authorization to sign preliminary heads of agreement and non-disclosure agreements with a consortium comprising Chevron, Capital TI, and Qatar's UCC. This consortium will conduct technical and financial feasibility studies for strategic export pipelines, specifically evaluating the Basra-Haditha-Kirkuk-Ceyhan and Basra-Haditha-Baniyas routes.

As part of these infrastructure efforts, the cabinet also authorized a consultancy services contract with Kellogg Brown & Root LLC for the Basra-Haditha oil pipeline project. The government noted that these initial agreements do not yet create final financial or contractual obligations for the oil ministry.

Simultaneously, the Basra Oil Company signed a five-year joint management contract with Halliburton to develop the Bin Omar and Al Sindbad oil fields. The agreement targets production increases at Bin Omar to 150,000 barrels per day and at Al Sindbad to between 80,000 and 100,000 barrels per day. These initiatives align with Prime Minister Ali Al Zaidi's goals for energy self-sufficiency and the Oil Ministry's broader target to reach a production capacity of six million barrels per day and eliminate gas flaring by 2028.