BP, ConocoPhillips Lead $60 Billion Iraq Energy Investment Push
BP and ConocoPhillips are poised to commit billions of dollars to Iraqi oil and gas development, a geopolitical shift designed to bypass the Strait of Hormuz and unlock a massive new revenue stream for oilfield service firms.
BP and ConocoPhillips will announce billions of dollars in new Iraqi energy investments on Friday at the U.S.-Iraq Business Summit in Washington. The commitments are part of a broader package expected to exceed $60 billion in agreements and memorandums of understanding between U.S. firms and the Iraqi government. Iraqi Prime Minister Ali Al-Zaidi is attending the summit to meet senior U.S. officials and energy executives.
The exact figures for the two oil majors remain undisclosed, but people familiar with the plans indicated the investments could reach into the tens of billions. The capital deployment extends well beyond the producers. Before arriving in Washington, Al-Zaidi spent Thursday in Houston meeting with Halliburton, Shell, Honeywell, Weatherford, and Baker Hughes to discuss technology, direct investment, and potential roles in large-scale energy projects.
For commodities markets, the core significance of this capital influx lies in physical supply chain rerouting. Washington is actively pushing to expand Iraq's oil production and build out diverse export routes. The strategic goal is to diminish the global market's reliance on the Strait of Hormuz, a critical maritime chokepoint that handles roughly a fifth of global oil supply.
Renewed tensions between the United States and Iran have made the strait an increasingly dangerous bottleneck, forcing energy traders to price in a persistent geopolitical risk premium. By developing overland or alternative export infrastructure out of Iraq, the industry aims to structurally reduce this vulnerability and stabilize global flows.
BP is already positioned for this ramp-up. The company, which has operated in Iraq for roughly a century, finalized an agreement with Baghdad in 2025 to redevelop the Kirkuk oil and gas resources. This contract covers the Baba and Avanah domes of the Kirkuk field, alongside the Bai Hassan, Jambur, and Khabbaz fields, supplementing its existing work at the giant Rumaila oilfield.
Iraq is actively courting the world's largest energy services and industrial companies to accelerate this natural gas and oil expansion. The sheer scale of the proposed $60 billion framework signals that major international operators and their service providers now view Iraqi field development as a central, long-term capital allocation priority.
