Global Oil Giants Return to Iraq Under New Terms
Major oil companies are reinvesting in Iraq as Baghdad offers more attractive contractual terms to boost production capacity despite regional instability.
Global oil companies are returning to Iraq to exploit reserves through new contractual terms that resemble production-sharing agreements. These updated deals allow firms to book reserves and profit from price increases, replacing previous service contracts that provided only flat rates.
TotalEnergies led the trend with a $27 billion investment in oil and gas fields. BP and ConocoPhillips have since signed contracts, while Chevron signed a preliminary deal for assets formerly owned by Lukoil, with a final agreement expected in 2027.
Iraqi Prime Minister Ali al-Zaidi aims to increase production capacity to between 8 million and 10 million barrels per day after 2035. However, current projections suggest a more realistic target of 5.5 million barrels per day by 2030. This push for expansion continues despite regional instability stemming from a war between the United States and Iran.
