Iraq's Energy Ministry signed agreements with U.S. companies valued at an estimated $200 billion, marking one of the country's largest energy investment initiatives as Baghdad seeks to expand oil production and accelerate the development of its natural gas sector.
Oil Minister Bassem Mohammed said the agreements were concluded during Iraqi Prime Minister Ali Al-Zaidi's recent visit to the United States and are expected to significantly strengthen Iraq's long-term energy production capacity.
Speaking to Iraq's state television, Mohammed said the package of agreements would support major increases in crude oil output while attracting substantial investment into projects designed to capture and process associated natural gas.
The minister added that Iraq's current oil production capacity stands at approximately 4.8 million barrels per day.
The new agreements underscore Iraq's strategy of drawing foreign investment into its energy sector even as it continues to operate under production limits agreed by the OPEC+ alliance.
Like several other major oil-producing nations, Iraq faces the challenge of balancing long-term investment in upstream projects with compliance under OPEC+ output quotas intended to stabilize global oil markets.
Although Iraq holds some of the world's largest proven crude oil reserves, prolonged production restrictions have complicated the country's efforts to increase export revenues needed to support economic development and a rapidly growing population.
Expanding associated gas production has become a key government priority as Baghdad works to reduce natural gas flaring, improve domestic electricity generation, and lessen dependence on imported fuel.
The latest agreements with U.S. energy companies are expected to play a central role in advancing those objectives while reinforcing economic cooperation between Baghdad and Washington.
Follow the latest news on Google News
