Iraq Signs Deal with US Firm Halliburton to Develop Two Oil Fields

The Iraqi government has signed an agreement with American oil services giant Halliburton to develop two oil fields in the south of the country. The deal was signed as Iraq seeks to increase its oil production.

The Basra Oil Company, a state-owned Iraqi firm, and Halliburton, one of the world’s largest oil field service providers, signed the contract on Sunday, according to a statement from Iraq’s Oil Ministry. The agreement covers the management of the Bin Omar and Sinbad oil fields in Basra province.

Iraqi Oil Minister Bassem Khodeir stated that the government aims to increase production at the Bin Omar field by 150,000 barrels per day within five years, alongside a boost in associated gas production of 300 million cubic feet. Production at the Sinbad field is expected to rise by 80,000 to 100,000 barrels per day.

The new administration in Baghdad, led by Prime Minister Ali al-Zaidi, has been urging OPEC to increase Iraq’s production quota, citing damage to the country’s industry from past conflicts and the recent Middle East war. Like other producers, Iraq, a founding member of OPEC, was heavily impacted by the US-Iran conflict, as oil exports account for roughly 90 percent of its budget revenues.

The contract with Halliburton was signed ahead of Zaidi’s scheduled visit to Washington later this month. The newly installed prime minister, who took office with US backing, hopes to attract more American investment to Iraq, which is in dire need of economic recovery after the halt in oil exports during the Middle East war led to significant revenue losses.