Energy deals to dominate $60bn US Iraq business summit as majors line up for Iraqi oil projects

Summit Focused on Energy Deals

US and Iraqi officials and companies were set to sign a flurry of agreements worth about $60 billion at a USIraq business summit, part of Baghdads push to deepen ties with Washington and revive its energy sector. Prime Minister Ali Al Zaidi, who was sworn in in May, led the Iraqi delegation as he sought foreign investment to repair infrastructure and restore production after disruptions tied to the Iran war.

An early announcement at the summit confirmed that ConocoPhillips has agreed to buy a 42 per cent stake in BP Energy Company of Kirkuk Limited to develop four producing oilfields in northern Iraq. The deal signals significant US investment into Iraqs upstream sector and reflects an appetite among majors to secure reserves and boost production as regional export routes change.

Chevron is also expected to sign agreements tied to two major Iraqi fields West Qurna 2 and Nasiriyah and has joined a consortium exploring the revival of the long-dormant KirkukBaniyas pipeline, an 800km conduit that historically ran to a Syrian Mediterranean port. If revived, that route would offer Gulf-state producers alternative export capacity after shipping through the Strait of Hormuz diminished following the Iran war.

Before the summit, Mr Al Zaidi travelled to Houston to hold talks with major US oil companies, including Chevron and ExxonMobil, underlining Baghdads strategy of courting international capital and technical expertise. US President Donald Trump had described "massive" oil deals expected to be unveiled at the summit.

Strategic and Market Implications

The backdrop for the rush of deals is a significant drop in Iraqi exports this year: Opec data shows Iraqs shipments fell from roughly 4.2 million barrels per day in February to about 1.45 million bpd in May. Restoring production and securing new export options are therefore urgent priorities for Iraq and for companies that can move quickly to resume output.

Beyond immediate production boosts, the agreements reflect wider geopolitics. Gulf states and importers have been searching for reliable export corridors since traffic through the Strait of Hormuz was effectively halted by the conflict with Iran. Reviving pipelines such as KirkukBaniyas would diversify routes and could reconfigure regional flows of crude if security and political arrangements allow.

There are financial and political constraints that could complicate delivery. Iraq still maintains close economic and security ties with Iran. The US only recently restored Iraqs access to dollar funding after withholding shipments to pressure Baghdad to form a government less influenced by Tehran. The US also retains control over Iraqs oil revenues held in an account at the Federal Reserve Bank of New York, a leverage point that underscores the political sensitivity of big energy contracts.

Even with US backing, Mr Al Zaidi must navigate domestic politics and external pressures. He emerged as a compromise candidate after Washington rejected a previous nominee seen as too close to Iran. Those competing influences, plus the practical challenges of rehabilitating fields, restarting pipelines and securing export routes, mean the headline numbers announced at the summit will need follow-through to translate into sustained output and revenues.

For oil markets, any credible pathway that restores Iraqi exports materially would ease supply tightness and could dampen recent price volatility driven by regional tensions. Traders and investors will be watching details: project timetables, financing terms, operator responsibilities, and the security guarantees that underwrite long-lead infrastructure such as pipelines and terminals.

In short, the summit is likely to be remembered not only for the headline $60 billion figure but for whether the deals deliver real production and export capacity amid complex geopolitical constraints.