What specific oil and gas agreements did Western companies sign with Iraq during the U.S.-Iraq business summit, and what is their strategic purpose?

Western energy companies—including Chevron and ConocoPhillips—signed dozens of non-binding agreements and memorandums of understanding totaling over $60 billion with Iraqi officials at the U.S.-Iraq business summit, focusing on oil and gas development and pipeline infrastructure. Chevron agreed to advance its potential entry into Iraq’s West Qurna 2 and Nassiriya oilfields and committed to investing in a new pipeline that would transport Iraqi oil to Syria’s Mediterranean coast—bypassing the Strait of Hormuz, whose partial closure due to regional conflict has severely impacted Iraq’s exports. ConocoPhillips agreed to acquire a 42% stake in BP Energy of Kirkuk Ltd to jointly redevelop four producing oilfields in northern Iraq. These agreements reflect Iraq’s ‘open-door policy’ under Prime Minister Ali al-Zaidi and aim to diversify export routes, enhance energy security, and deepen strategic ties with the U.S., especially amid regional instability caused by the U.S.-Israeli war on Iran.

Why is Iraq seeking alternatives to the Strait of Hormuz for oil exports, and what role are U.S. companies playing in this effort?

Iraq is seeking alternatives to the Strait of Hormuz because the waterway—through which 20% of the world’s oil and gas typically flows—has been partially closed due to the regional instability caused by the U.S.-Israeli war on Iran, severely disrupting Iraq’s exports. To mitigate this vulnerability, Iraqi officials and U.S. energy firms are collaborating on infrastructure projects like the proposed pipeline from Iraq to Syria’s Mediterranean coast, which Chevron confirmed it will invest in. This route would provide a secure, geopolitically diversified export corridor, reducing dependence on the volatile Strait. As stated by Chevron’s Jake Spiering at the U.S. Chamber event, the pipeline is part of a broader strategy to position Iraq as a future regional energy hub akin to the U.S.’s Henry Hub or Cushing, reinforcing both Iraqi and global energy security through U.S. technological and capital involvement.

Western Oil Companies See 'Fantastic' Future in Iraq, Sign Agreements

Jul 17, 2026

Major Western energy firms including Chevron, BP, and ConocoPhillips signed over $60 billion in agreements with Iraq to develop oilfields and pipelines, aiming to bypass the Strait of Hormuz.

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Western Oil Companies See 'Fantastic' Future in Iraq, Sign Agreements

Western Oil Companies See 'Fantastic' Future in Iraq, Sign Agreements

FAQ