US and Iraqi companies were expected to sign a series of deals worth $60 billion on Friday as Prime Minister Ali Al Zaidi seeks to boost economic ties with Washington and revitalise his country's energy sector.
An early deal announcement came from ConocoPhillips, which agreed to acquire a 42 per cent stake in BP Energy Company of Kirkuk Limited to develop four producing oilfields in northern Iraq.
Chevron is expected to sign agreements with Iraq on the West Qurna 2 and Nasiryah oilfields, and has announced that it is joining a consortium of companies exploring the potential to revive the long-defunct Kirkuk-Baniyas pipeline, the 800km conduit that runs from Iran to a Syrian port on the Mediterranian coast.
Gulf states are seeking alternative export routes since the Iran war essentially halted traffic in the Strait of Hormuz. About 20 per cent of the world's oil supply passed through the waterway before the conflict began.
Before Friday's summit, Mr Al Zaidi led an Iraqi delegation to Houston, Texas, to hold talks with oil majors including Chevron and ExxonMobil.
US President Donald Trump this week previewed "massive" oil deals to be announced, as Iraq looks to boost its energy sector , which has been bruised by the Iran war. Iraq's exports plunged from about 4.2 million barrels per day in February to about 1.45 million bpd in May, according to Opec data.
Mr Al Zaidi was sworn in as prime minister in May after emerging as a compromise candidate when Washington rejected the previous nominee, former prime minister Nouri Al Maliki, because of his alleged close ties to Iran and its proxies. Mr Al Maliki denies the claims.
Despite winning Mr Trump's backing, Mr Al Zaidi faces his own roadblocks. Iraq retains close economic and security ties with Iran, and Mr Al Zaidi last week attended the funeral procession of the assassinated supreme leader, Ali Khamenei.
The US resumed dollar access to Iraq earlier this month, several months after suspending shipments to pressure Baghdad into forming a new government without Iranian influence. The US holds control over Iraq's oil revenue, which it holds in an account at the Federal Reserve Bank of New York.
