Iraq’s state-run Basra Oil Company on Sunday signed a joint management contract with US company Halliburton for two oilfields in the oil-rich province of Basra.
The Iraqi Oil Ministry said on Sunday the deal for the Bin Omar and Al Sindbad fields is part of Baghdad’s strategy to raise production and attract US investment, mainly in the energy sector.
Oil Minister Bassim Mohammed Khudair, who oversaw the signing ceremony in Baghdad, said the deal aligns with the “ministry’s strategy to increase oil and gas production capacity” as part of its future vision for investment in the energy sector.
Under the agreement, production at the Bin Omar field is expected to increase to 150,000 barrels per day over the next five years, along with 300 million standard cubic feet per day of associated gas, Mr Khudair said.
Al Sindbad's five-year output is forecast to increase to between 80,000 bpd and 100,000 bpd, with associated gas production rising to between 240 million and 260 million standard cubic feet per day. The ministry said the additional production “will provide great flexibility in providing gas to the country’s energy sector”.
The Halliburton deal is the latest in a series of steps by Iraq to bring US companies back into its upstream sector after years of dominance by Chinese, Russian and European firms.
Iraq is the second-largest oil producer in Opec but it still flares large volumes of gas, and imports up to one third of its electricity and gas needs from neighbouring Iran. Chronic power shortages have fuelled protests in recent summers.
Prime Minister Ali Al Zaidi’s government has made self-sufficient energy a priority for Iraq and has been actively wooing US companies to strengthen economic ties with Washington.
In recent years, Baghdad has signed gas development and power agreements with American firms including GE Vernova and Honeywell. The US has encouraged the shift, viewing greater American commercial presence in Iraq’s energy sector as a way of reducing Baghdad’s dependence on Tehran.
Halliburton, one of the largest US oilfield services companies, previously worked in Iraq during the post-2003 reconstruction period but scaled back operations over security concerns. Its return signals renewed confidence in Iraq’s upstream plans from US industry.
The Oil Ministry has set a target of reaching six million bpd in production capacity and ending gas flaring by 2028. Officials say joint management contracts such as the one with Halliburton are designed to draw new technology and capital without requiring full licensing rounds.
