Iraq Gives U.S. Firms Priority, Approves 500,000-bpd Energy Plan
Updated
Updated · Fortune · Jun 30
Iraq Gives U.S. Firms Priority, Approves 500,000-bpd Energy Plan
3 articles · Updated · Fortune · Jun 30
Summary
Ali Al Zaidi directed Iraq’s oil, electricity and communications ministries to give U.S. companies top priority, with Chevron, Halliburton and HKN already cleared for major oil projects.
A proposed joint U.S.-Iraq energy and development fund would be financed through the equivalent of 500,000 barrels per day, aimed at helping refill the U.S. Strategic Petroleum Reserve.
Al Zaidi said Iraq could raise output to 2 million bpd and may suspend OPEC membership if demands for a higher production quota are not met, though the Oil Ministry recently denied plans to quit.
His government has also arrested 47 officials in a sweeping anti-corruption drive, set up a new contract-oversight body and moved as Iraq faces added scrutiny on the FATF grey list.
The push comes just a month after Al Zaidi took office and ahead of a mid-July Washington visit meant to deepen strategic ties with the United States.
As Iraq cracks down on corruption, will its new American partners face heightened compliance risks?
Is rising US interest rate risk now the biggest threat to the Gulf's bond market rally?
Can the UAE's ambition to become a global gaming hub succeed without clashing with its cultural values?
Iraq’s $53 Billion Energy Pivot: U.S. Partnerships, OPEC Tensions, and the Race to 2 Million Barrels per Day
Overview
Iraq is making a bold shift in its energy sector by prioritizing partnerships with the United States, aiming to boost its energy independence and development. This new direction is marked by high-profile agreements, such as Chevron’s expansion into Iraqi oil fields after acquiring Hess, and the takeover of the West Qurna-2 oilfield, previously operated by Russia’s Lukoil. These moves are supported by new financial mechanisms and high-level meetings between U.S. and Iraqi officials, highlighting Iraq’s commitment to leveraging American expertise and investment to drive economic growth and strengthen its position in the global energy market.