BP, ConocoPhillips to invest in Iraq as U.S. seeks to curb Iran's energy influence

• The investments by BP, ConocoPhillips and other firms could reach tens of billions of dollars, with BP focusing on the Rumaila oilfield and Kirkuk field redevelopment projects
• The Strait of Hormuz, which handled roughly a fifth of global oil before recent conflicts, has become a critical focus amid renewed U.S.-Iran tensions
• Iraqi Prime Minister Ali Al-Zaidi is meeting with major energy companies including Halliburton, Shell, Honeywell, Weatherford and Baker Hughes to expand oil and gas production

Summary

Key Developments:

BP and ConocoPhillips are poised to announce billions—potentially tens of billions—of dollars in new investments in Iraq during the U.S.-Iraq Business Summit in Washington on Friday. Iraqi Prime Minister Ali Al-Zaidi is meeting with senior U.S. officials and energy executives as part of the initiative.

Major Figures:

• Total agreements and memorandums of understanding at the summit are expected to exceed $60 billion between U.S. companies and Iraq
• Individual investment commitments from BP and ConocoPhillips will be in the billions of dollars range

Strategic Context:

The investments represent a U.S. effort to strengthen Iraq's energy sector and reduce regional dependence on routes vulnerable to Iranian disruption, particularly the Strait of Hormuz, which handled approximately one-fifth of global oil prior to recent conflicts. Tensions between the U.S. and Iran have heightened the strategic importance of diversifying energy export routes.

Company Focus:

BP has historical operations in Iraq, recently focusing on the Rumaila oilfield and signing agreements in 2025 to redevelop oil and gas resources in Kirkuk, including the Baba, Avanah domes, and the Bai Hassan, Jambur, and Khabbaz fields.

Broader Engagement:

Al-Zaidi also met with representatives from Halliburton, Shell, Honeywell, Weatherford, and Baker Hughes in Houston on Thursday to discuss investment opportunities, technology transfers, and participation in large-scale energy projects.

Market Implications:

These developments signal intensified competition for energy influence in the Middle East and could reshape regional oil production dynamics while providing Iraq opportunities to expand its oil and gas output and infrastructure.