Iraq signs Oil deals with western energy firms

Iraq has signed a series of agreements with Western energy firms, including a landmark deal to revive a key oil pipeline linking its northern fields to Syria’s Mediterranean coast, in a move aimed at diversifying export routes and reducing reliance on the Strait of Hormuz.

The preliminary deals were finalised during a United States–Iraq business summit at the US Chamber of Commerce in Washington, as Baghdad seeks alternative pathways for oil exports amid ongoing regional tensions.

A major highlight is an agreement between Iraq and Syria to reconstruct the long-defunct crude oil pipeline running from the oil-rich Kirkuk region to the port city of Baniyas. The project is expected to be carried out by Chevron under the deal.

According to officials, the pipeline—once restored—will serve as a strategic energy corridor, enabling Iraq to transport crude to Mediterranean markets without passing through the Strait of Hormuz, a route increasingly affected by geopolitical instability.

The US Department of State welcomed the initiative, noting that a US-led international consortium would oversee both the technical and financial aspects of the project.

Once operational, the pipeline is expected to have an initial capacity of up to 2 million barrels per day, significantly boosting Iraq’s export flexibility and strengthening regional energy connectivity.

The agreements underscore Baghdad’s broader strategy to safeguard its energy exports while adapting to shifting geopolitical dynamics in the region.