BAGHDAD — Iraq’s new Prime Minister Ali al-Zaidi is seeking major U.S. investment in the country’s oil, gas and power sectors during a White House visit this week, as Baghdad looks to diversify partnerships after the Iran war dented crude output and state finances.
Zaidi, who took office in May, has prioritized deals with U.S. firms including Chevron and General Electric, and has approved an agreement with HKN Energy to develop the Himreen oilfield. Officials say talks also cover U.S.-backed power and liquefied natural gas projects, security guarantees for American operators in the Kurdistan region, and revived plans for export pipelines to Mediterranean markets.
Analysts and Iraqi sources say the push signals a deliberate shift to broaden foreign involvement beyond long-standing Chinese, Russian and European players. A June cabinet instruction reportedly urged the Basra Oil Company to ease certain regulatory hurdles for U.S. companies negotiating projects, underscoring Baghdad’s intent to make investment terms more attractive.
Zaidi’s outreach aims to accelerate output growth, shore up electricity generation and ease budget pressures, but analysts caution that attracting sufficient capital will be difficult. Iraq remains constrained by OPEC+ production limits and longstanding infrastructure bottlenecks, while legal disputes, bureaucracy and periodic security threats continue to concern investors despite improved stability since the Islamic State’s defeat.
Negotiations with Chevron over the West Qurna-2 field, after Baghdad moved to replace Russia’s Lukoil as operator are seen as a pivotal test of Zaidi’s strategy to convince U.S. majors that Iraq is open for large-scale investment. Iraqi officials say security measures around key installations have been strengthened since the Iran conflict to reassure foreign operators. Lawmakers and energy consultants say Zaidi’s business background makes him keenly aware of the political and commercial challenges ahead.