A drilling rig at the Halfaya oil field in southern Iraq on August 31, 2023. US energy companies are pursuing new stakes in Iraq’s oil fields and export routes, but billions in announced deals will matter only if contracts close and pipelines are built. (Shutterstock/endek sudrajad)

Iraq Courts US Oil Giants to Secure New Export Routes

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Chevron and ConocoPhillips are pursuing different paths into Iraq’s oil sector, but the $60 billion in announced deals will mean little until contracts close and pipelines are built.

Baghdad’s efforts to strengthen economic and energy ties with Washington reflect concrete economic and strategic needs beyond political normalization. With approximately 145 billion barrels of proven oil reserves, Iraq holds around 9 percent of the world’s proven reserves and ranks among OPEC’s largest reserve holders. Yet the country depends on a limited number of export routes to bring its resources to global markets.

The US-Iraq Business Summit held in Washington in July 2026 was significant for Baghdad. During Iraqi Prime Minister Ali al-Zaidi’s visit, more than 50 agreements and memorandums of understanding (MOUs) were announced between US companies and the Iraqi government. The US Chamber of Commerce put the combined value at more than $60 billion. The package covered energy, infrastructure, technology, finance, and health care, with companies including Chevron, ConocoPhillips, BP, GE Vernova, Shell, and KBR. However, the $60 billion figure should not be treated as foreign direct investment (FDI). It includes partnerships and MOUs as well as binding agreements, and does not represent capital already transferred to Iraq or guaranteed to enter the country. Instead, it reflects the announced value of potential future projects. This distinction matters when assessing Iraq’s developing economic relationship with the United States.

So, what are US companies seeing in Iraq? Chevron’s interest in producing fields and alternative export infrastructure is particularly noteworthy.

Why the Kirkuk-Ceyhan Pipeline Still Matters for Iraqi Oil

Most Iraqi oil exports pass through the Persian Gulf, exposing the country to security conditions in the Strait of Hormuz. Historically, Iraq also had export connections through Turkey, Syria, and Saudi Arabia, linking its oil to the Mediterranean and Red Sea. The approximately 986-kilometer (about........

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