Iraq has signed $60 billion in energy deals with US and British oil majors, marking a major step in Washington's push to build a Middle East alliance. The agreements, which involve exploration and production in several Iraqi fields, are part of a broader effort to construct a strategic corridor linking the region.
The scope of the deals
The contracts cover oil and gas development across multiple blocks in Iraq. While the exact breakdown of investment per company was not disclosed, the total value of $60 billion makes it one of the largest energy packages in the country's history. The deals are expected to boost Iraq's production capacity and help modernize its energy infrastructure.
Washington's strategic push
The agreements come as the United States seeks to strengthen economic and political ties in the Middle East. Tom Barrack, a former Trump administration official, has been involved in the negotiations as a special envoy. Barrack's role includes helping to design a regional corridor that would facilitate trade and energy flows, potentially linking Iraq with neighboring countries.
What the corridor means
The proposed corridor is envisioned as a network of pipelines, railways, and roads that would connect energy producers in the Gulf to markets in Europe and Asia. Iraq, with its vast oil and gas reserves, is a key piece of that puzzle. The deals with US and British majors are seen as a way to anchor Iraq in a Western-aligned energy framework, reducing its reliance on other regional powers.
The involvement of American and British companies also signals a shift in Iraq's investment landscape. For years, Chinese and Russian firms have dominated Iraq's energy sector. The new agreements could rebalance that dynamic, though it remains unclear how quickly the projects will move forward.
The Iraqi government has said it expects the first new wells to come online within two years. But the deals still face hurdles, including security concerns in some areas and the need for regulatory approvals. Barrack's team is expected to continue working with Iraqi officials to finalize the corridor plans. The next milestone will be a signing ceremony in Baghdad later this year, where more details on the specific companies and timelines are likely to emerge.
