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The Iraqi leader’s media office announced that a total of 48 agreements, memoranda of understanding, cooperation pacts and partnership declarations were signed between Iraqi and US public and private sector entities during Prime Minister Ali al-Zaidi’s visit to the United States this week. Many of the deals involve the ministries of oil and electricity partnering with ExxonMobil, KBR, GE Vernova, Shell and Halliburton, the office reported. The arrangements also cover construction of a major crude oil pipeline between Iraq and Syria.
An additional accord was reached with Starlink to bring satellite communications services to Iraq, according to the media office. Iraq has been seeking an economic boost after revenue losses from halted oil exports linked to regional conflicts, the office stated. The country continues to grapple with poor infrastructure, failing public services, mismanagement and corruption more than two decades after the 2003 invasion.
ConocoPhillips announced that it will acquire a 42 percent interest in a BP subsidiary holding the contract to develop the Baba and Avanah domes at Kirkuk and three adjacent fields in northern Iraq. The US company said in a statement that the partnership signing was expected during al-Zaidi’s visit to Washington. ConocoPhillips CEO Ryan Lance said, “We see an opportunity to create value through a capital-efficient redevelopment program that leverages a large existing production base, while also offering meaningful exploration upside.” The firm added that it does not anticipate significant capital contributions with remuneration linked to a proportionate share of incremental production and costs. BP and Iraq finalized the Kirkuk agreement in February 2025 to support higher output from the fields.
US President Donald Trump praised al-Zaidi as a champion during a meeting at the White House on Tuesday, according to the reports. Al-Zaidi, a businessman who came to power this year with US blessing after Trump vetoed another candidate, has vowed to strengthen Iraq’s fragile economy. The prime minister has also pledged to disarm pro-Iran armed groups in Iraq that have targeted US facilities.
World Bank data shows Iraq’s economy declined by 2.4 percent year-on-year in the first nine months of 2025, driven by a 5.7 percent contraction in oil GDP due to OPEC+ production limits. The institution reported that non-oil GDP growth slowed to 1.5 percent amid water and electricity shortages plus a liquidity crunch from falling oil revenues. Oil accounted for an estimated 53 percent of real GDP, 88 percent of government revenues and 91 percent of merchandise exports in 2025.
Iraq has long balanced competing influences from its allies in Washington and neighboring Iran, a dynamic that remains central to its foreign policy. The latest agreements reflect continued efforts to deepen energy ties with the United States. Public Authority for Civil Information figures place the country’s expatriate population at roughly 3.3 million, underscoring the scale of its labor market challenges amid broader economic reforms.
