Iraq's government and US oil services giant Halliburton signed a deal on Sunday to jointly manage two oil fields in the southern Basra province, as Baghdad seeks to ramp up production. The contract covers the Bin Omar and Sinbad oil fields, according to a statement from the Iraqi oil ministry's media office.
Details of the agreement
The state-owned Basra Oil Company entered into a joint management contract with Halliburton for the development of the Bin Omar and Sinbad fields. Iraqi Oil Minister Bassem Khodeir said the agreement aligns with the government's strategy to enhance oil and gas production capacity. Under the deal, Iraq aims to increase oil output at the Bin Omar field by 150,000 barrels per day (bpd) within five years, along with 300 million cubic feet of associated gas. Production at the Sinbad field is expected to rise by 80,000 to 100,000 bpd.
Context and strategic importance
The signing comes as the new Iraqi government, led by Prime Minister Ali Al-Zaidi, pushes for a higher oil production quota from OPEC. Iraq, a founding member of OPEC, argues that past conflicts and the recent Middle East war have damaged its oil industry. The country relies heavily on oil exports, which account for about 90 percent of its budget revenues, and was significantly impacted by the US-Iran conflict.
Upcoming US visit and economic revival
The Halliburton contract was finalized ahead of Prime Minister Zaidi's planned visit to Washington later this month. Zaidi, who recently took office with US backing, hopes to attract more American investment to Iraq. The country urgently needs to revive its economy, especially after revenue losses from halted oil exports during the Middle East war.
