BP, ConocoPhillips to back Iraq with major investment as U.S. seeks to cut Iran's energy hold

BP and ConocoPhillips are set to announce billions of dollars of new investments in Iraq on Friday as Washington seeks to bolster the country's energy sector and reduce the region's reliance on routes vulnerable to Iranian disruption, according to people familiar with the plans.

The announcements are expected during the U.S.-Iraq Business Summit in Washington, CNBC's Brian Sullivan told Access Middle East , citing sources. Iraqi Prime Minister Ali Al-Zaidi will meet senior U.S. officials and executives from major energy companies at the summit. The event is expected to feature more than $60 billion in agreements and memorandums of understanding between U.S. companies and the Iraqi government.

The investments by BP, ConocoPhillips and other companies will be in billions of dollars, and might even be in tens of billions, the people said. Details of the individual commitments were not immediately available.

The deals come as the U.S seeks to expand investment in Iraq's energy sector, boost the country's oil production and diversify export routes vulnerable to regional disruption. The Strait of Hormuz handled roughly a fifth of global oil before the war broke out and has become an increasingly important focus for energy markets after renewed tensions between the United States and Iran.

BP has a history in Iraq dating back about a century and has in recent years focused on the giant Rumaila oilfield. In 2025, the company finalized an agreement with Baghdad to redevelop oil and gas resources in Kirkuk, covering the Baba and Avanah domes of the Kirkuk field and the nearby Bai Hassan, Jambur and Khabbaz fields.

Iraq is courting some of the world's largest energy-services and industrial companies as it seeks to expand oil and gas production and accelerate development of its natural gas resources. Al-Zaidi met representatives from Halliburton, Shell, Honeywell, Weatherford and Baker Hughes in Houston on Thursday, with talks covering investment, technology and potential participation in large energy projects, according to his office.