Iraq Signs Five-Year Halliburton Deal to Develop Basra Oil and Gas Fields

Iraq signed a five-year agreement with U.S. oilfield services company Halliburton to manage and develop the Bin Umar and Sindbad oil and gas fields in the southern province of Basra, advancing the government's strategy to expand hydrocarbon production and strengthen fuel supplies for the domestic power sector.

The Iraqi Ministry of Oil announced on Sunday that the contract was signed between Basra Oil Company and Halliburton in the presence of Oil Minister Bassem Mohammed Khudair Al-Abbadi, who said the project forms part of a broader national plan to increase the country's oil and gas production capacity.

Baghdad is targeting crude oil production of 5 million barrels per day in the near term and 7 million barrels per day before the end of the decade, compared with an OPEC+ production quota of 4.38 million barrels per day for July.

Under the agreement, Iraq aims to increase crude production at the Bin Umar field to 150,000 barrels per day, while raising associated natural gas output to 300 million standard cubic feet per day.

Development of the Sindbad field is expected to lift oil production to 100,000 barrels per day and boost associated gas production to 260 million standard cubic feet per day.

The additional gas volumes are expected to strengthen fuel supplies for Iraq's electricity sector, helping reduce dependence on imported energy while supporting rising domestic demand.

Al-Abbadi said the government remains committed to expanding cooperation with major international energy companies, particularly U.S. firms, noting that Halliburton has maintained operations in Iraq since 2003.

The agreement reflects Baghdad's broader effort to attract foreign expertise and investment as it seeks to maximize production from existing fields while accelerating the development of strategic hydrocarbon assets.

Located near the Shatt al-Arab waterway in Basra province, the Bin Umar field ranks among Iraq's largest oil and gas assets. It is estimated to contain approximately 1 billion barrels of oil reserves and around 780 billion cubic meters of natural gas, making it a key component of the country's long-term energy development plans.