Oil Minister Affirms Growing American Corporate Interest in Developing Iraqi Petroleum Fields and Industry
Iraqi Minister of Oil Basim Mohammed Khudair disclosed a growing appetite among major American corporations to invest in the domestic market and actively participate in advancing the country's oilfields and petroleum industry. He emphasized that the ministry strongly endorses this approach to capitalize on these firms' extensive technical expertise, technology transfer capabilities, and their contribution to training and developing national personnel. Khudair stated in an official press interview that numerous American enterprises currently operate within Iraq, prominently including energy service and consulting firms such as Halliburton, Schlumberger, Baker Hughes, and KBR. He noted that the ministry maintains active memorandums of understanding with global giants including Chevron, ExxonMobil, and ConocoPhillips. Detangling current discussions, the minister explained that negotiations are ongoing with Chevron regarding the West Qurna 2 oilfield, following the departure of Russia's Lukoil under international sanctions, alongside talks concerning the development of the four blocks in the Nasiriyah field. Meanwhile, detailed and extensive discussions continue with ExxonMobil concerning the Majnoon oilfield development, its export infrastructure, and the strategic seawater injection project aimed at sustaining reservoir pressure with a capacity of two and a half million barrels per day. He also highlighted the activation of an operational contract with Halliburton to develop the Nahr Bin Omar and Sindbad fields, alongside a memorandum of understanding with ConocoPhillips aimed at developing the Akkas gas field, where Schlumberger is currently conducting initial-phase works. Furthermore, the ministry signed and activated a contract with HKN Energy to develop the Hamrin field, which he described as an essential venture representing an integrated investment in oil and gas. Khudair reaffirmed Iraq’s commitment to establishing a welcoming environment for reputable American and European energy companies by dismantling bureaucratic obstacles and expediting the transition from contract formalization to on-the-ground implementation. He pointed to the timely execution of the HKN deal as evidence of administrative efficiency, confirming that this exact streamlined approach governs ongoing talks with Chevron and ExxonMobil. Regarding contract structures, Khudair clarified that existing agreements remain service contracts, yet have evolved significantly from the initial licensing rounds launched in 2010. They are now structured around profit-sharing models rather than production-sharing arrangements. He concluded that this updated framework aligns with the demands of Western operators, ensuring mutual financial benefits, accelerating project completion, and maximizing financial revenues for the Iraqi state.
