BP and ConocoPhillips plan Iraq energy investments, CNBC reports
The expected deals would put fresh capital behind Iraq’s oil and gas sector as Washington pushes for supply routes less exposed to Iran-related risk.
By Jordan Bell · Startups & Deals Reporter
· 3 min read
BP and ConocoPhillips are preparing to announce multibillion-dollar energy investments in Iraq, CNBC reported, a move that could matter for investors watching oil supply, geopolitical risk and big oil capital spending. For everyday investors, the basic link is straightforward: more investment can raise future production capacity, while new export options can reduce the risk that one chokepoint disrupts supply.
The announcements are expected Friday at the U.S.-Iraq Business Summit in Washington, CNBC’s Brian Sullivan reported on Access Middle East, citing people familiar with the plans. Iraqi Prime Minister Ali Al-Zaidi is set to meet senior U.S. officials and executives from large energy companies at the gathering, according to CNBC.
The summit is expected to include more than $60 billion in agreements and memorandums of understanding between U.S. companies and Iraq’s government, CNBC reported. A memorandum of understanding, often called an MOU, is a document that lays out intended cooperation or commercial terms, though it is generally less final than a completed contract.
CNBC reported that BP, ConocoPhillips and other companies are expected to commit billions of dollars, with some investments potentially reaching into the tens of billions. The exact size and structure of each company’s commitment were not immediately available, according to the report.
Why Washington wants more energy investment in Iraq
The deals come as the U.S. seeks to expand investment in Iraq’s energy industry, raise the country’s oil output and broaden export routes that could be exposed to regional disruption, CNBC reported. In plain terms, export routes are the paths oil and gas take from producing fields to buyers abroad. If a route becomes risky or unavailable, barrels can be delayed, rerouted or priced with a higher risk premium.
The Strait of Hormuz remains a central pressure point for energy markets. CNBC reported that the waterway carried about one-fifth of global oil before the war broke out, and that it has drawn more attention after renewed tension between the United States and Iran. Because oil is priced globally, disruption near a major shipping lane can affect fuel costs and energy stocks far beyond the Middle East.
For oil majors, investments in Iraq also speak to a familiar industry trade-off. Large fields can offer long-lived production, but projects depend on contracts, infrastructure, political stability and operating costs. CNBC said the individual commitments from BP and ConocoPhillips had not yet been detailed, so investors do not yet have enough information to judge timing, returns or cash-flow impact.
BP already has a long record in Iraq
BP’s ties to Iraq go back roughly 100 years, and the company has worked in recent years around the Rumaila oilfield, according to CNBC. In 2025, BP completed an agreement with Baghdad to redevelop oil and gas assets in Kirkuk, covering the Baba and Avanah domes of the Kirkuk field along with the nearby Bai Hassan, Jambur and Khabbaz fields, CNBC reported.
Iraq is also seeking help from global energy-services and industrial companies as it tries to increase oil and gas production and speed development of its natural gas resources, according to CNBC.
Al-Zaidi met representatives from Halliburton, Shell, Honeywell, Weatherford and Baker Hughes in Houston on Thursday, according to his office. Those discussions covered investment, technology and possible participation in large energy projects, CNBC reported.
This story draws on original reporting from CNBC.
