BP, ConocoPhillips announce billions in Iraq investments

ConocoPhillips ↗ 0.38% and BP ↘ 0.98% are announcing billions of dollars in new investments in Iraq's energy sector on Friday as part of a broader push by Washington to strengthen Baghdad's oil industry and reduce the region's dependence on energy routes vulnerable to Iranian disruption.cnbc+1

The announcements come at the US-Iraq High-Level Business Summit in Washington, where Iraqi Prime Minister Ali al-Zaidi is meeting senior US officials and executives from major energy companies. Organizers plan to unveil approximately $60 billion in commercial agreements and memorandums of understanding between US companies and the Iraqi government, according to people familiar with the event.middle-east-online+1

ConocoPhillips Enters Kirkuk Partnership

ConocoPhillips has agreed to acquire a 42% stake in BP's Kirkuk oil unit, joining BP as a partner in the redevelopment of four producing oil fields in Iraq's northern Kirkuk region. BP had been actively seeking a partner since early 2026 to boost output and share costs at the Kirkuk fields, one of the Middle East's oldest producing areas, as Bloomberg News reported in February.globalbankingandfinance+1

The Kirkuk project covers the Baba and Avanah domes of the Kirkuk oil field, along with three adjacent fields — Bai Hassan, Jambur, and Khabbaz — all operated by Iraq's North Oil Company. BP received final Iraqi government ratification for its contract in March 2025, with an initial phase targeting more than 3 billion barrels of oil equivalent and a wider resource opportunity of up to 20 billion barrels.enerdata+3

A Diplomatic and Commercial Pivot

The energy deals are central to President Trump's effort to redefine the US-Iraq relationship around commerce rather than conflict. Al-Zaidi, a businessman-turned-politician, met Trump at the White House earlier this week, with the president calling him "a great leader" and saying the bilateral relationship is shifting from "not so good" to "outstanding."semafor+1

Energy commitments from BP, ConocoPhillips, and other companies are expected to reach into the billions and potentially tens of billions of dollars, though full details of individual projects had not yet been disclosed ahead of the summit. Additional agreements are expected in digital infrastructure, healthcare, and agriculture as Iraq seeks to diversify its economy beyond oil.middle-east-online+1

Under BP's original contract, the project aims to raise crude production capacity at the four Kirkuk fields to a peak of 420,000 barrels per day, while also investing in associated gas production and constructing a 400-megawatt power plant.english.aawsat+1