Iraq is forming a new package of cooperation with American energy companies that is expected to increase oil and gas production, accelerate the processing of associated gas, and attract private capital to modernize the country’s oil and gas infrastructure.
Iraq’s Oil Minister Basim Mohammed estimated the total value of agreements between the Iraqi oil ministry and U.S. companies at approximately $200 billion. According to him, the projects should significantly expand production capacity and increase investment in the use of associated gas. Iraq’s current oil production capacity is estimated at about 4.8 million barrels per day.
At the same time, the declared $200 billion should not be viewed exclusively as the volume of already financed projects. The package includes contracts, preliminary agreements, memorandums, technical studies, and potential investment programs, the final parameters of which will be determined following negotiations.
During the visit of Iraqi Prime Minister Ali Faleh al-Zaidi to the United States, the Iraqi delegation held talks with representatives of Halliburton, Shell, Honeywell, Weatherford, and Baker Hughes. The parties discussed the development of oil and gas fields, the introduction of modern technologies, and increasing the efficiency of the energy sector.
Separate talks were held with Chevron. Iraq proposed that the company expand its activities in the southern fields and participate in oil refining, petrochemical, and gas infrastructure projects.
Chevron, for its part, expressed interest in developing the southern fields, laying pipelines to regional ports, and creating oil storage facilities. Iraqi authorities stated their readiness to speed up the allocation of land plots, the issuance of permits, and the creation of the necessary infrastructure.
Halliburton received a contract from Basra Oil Company to provide integrated management services for the Bin Omar and Sindbad fields in southern Iraq. The agreement provides for integrated asset development management, as well as support for the design, procurement, and construction of infrastructure.
In fact, Iraq is seeking to move from separate service contracts to a long-term presence of American companies in production, processing, oilfield services, digital field management, and the construction of export infrastructure.
For Baghdad, American capital is important not only as a source of financing. Large U.S. companies can provide access to enhanced oil recovery technologies, modern drilling and compressor equipment, automation of production processes, and international project management standards.
An additional task is the diversification of export routes. Iraq is interested in developing pipelines, oil storage facilities, and new outlets to regional ports in order to reduce dependence on a limited number of supply routes.
What opportunities are opening up for Ukraine
The scale of Iraqi projects creates opportunities not only for American operators. A significant part of the work will be carried out by international EPC contractors, oilfield service companies, and equipment suppliers that form their own global procurement chains.
For Ukrainian companies, the most realistic path is not the independent development of oil fields, but participation in the projects as suppliers, engineering partners, and subcontractors of American operators.
One of the main areas could be pipe and metallurgical products. Field development and export infrastructure construction projects will require casing, tubing, and trunk pipelines, sheet metal products, tanks, metal structures, and elements of industrial buildings.
Ukrainian manufacturers could also supply pumping and compressor equipment, shut-off valves, electric motors, transformers, cable products, switchgear, and modular substations.
A separate niche is connected with the processing of associated gas. Iraq needs gas gathering networks, compressor stations, gas purification and treatment units, small power plants, and electricity transmission equipment. American agreements provide for increased investment specifically in gas projects.
Ukrainian engineering companies can participate in the design of pipelines, tank farms, compressor and pumping stations, industrial facilities, and power supply systems.
There are also prospects for the IT sector. This concerns the implementation of SCADA systems, automated oil and gas metering, digital field modeling, equipment condition monitoring, and industrial cybersecurity.
Another area could be the technical diagnostics of pipelines, protection of metal from corrosion, inspection of existing infrastructure, and preparation of projects for its modernization.
The development of the oil and gas sector will also create demand in related industries. The construction of industrial facilities will require cement, road materials, specialized machinery, mobile buildings, warehouse equipment, water supply systems, and transport logistics.
Additional opportunities may arise for Ukrainian food producers. Large projects are accompanied by the creation of workers’ settlements, logistics centers, and new service enterprises, which increases demand for flour, vegetable oil, poultry meat, cereals, and ready-made food products.
A trilateral model could be optimal, in which an American company acts as the operator or general contractor, a Ukrainian enterprise supplies equipment, materials, or engineering solutions, and an Iraqi partner provides registration, local logistics, and interaction with government agencies.
Working through American operators and international EPC contractors allows Ukrainian enterprises to obtain more transparent technical requirements, safety standards, and quality control procedures.
At the same time, Ukrainian companies will need to undergo supplier prequalification, confirm that their products comply with API, ASTM, or the requirements of a specific customer, prepare English-language technical documentation, and provide after-sales service for the equipment.
For a systematic entry into the market, it would be advisable to form a separate catalog of Ukrainian manufacturers of oil and gas and energy equipment. It should specify production capacities, international certificates, experience in export deliveries, and readiness to work through American general contractors.
The next stage could be a trilateral business mission Ukraine–USA–Iraq with the participation of manufacturers of pipes, energy equipment, engineering, and digital companies.
The most logical venues for such events are Baghdad, Basra, and Houston, where Iraqi customers, oilfield service companies, and the main decision-making centers of the American energy industry are concentrated.
Maxim Urakin, founder of the Experts Club information and analytical center, commenting on the structure of Ukraine’s foreign trade, noted the need to move to a more complex export model.
“Ukraine needs to increase not only the physical volume of supplies, but also the share of products with high added value,” Urakin emphasized.
In his opinion, in order to reduce the trade deficit, Ukraine needs to develop processing industries, machine-building, the food industry, and technological exports.
Applied to Iraq, such a strategy means a transition from predominantly traditional commodity supplies to the export of pipes, metal structures, equipment, software solutions, and engineering services.
Iraq is already a profitable market for Ukraine with a large positive trade balance. However, participation in energy and infrastructure projects would make the relationship more long-term and increase the share of industrial products in Ukrainian exports.
According to the Experts Club information and analytical center, in January–June 2026 Iraq ranked 53rd among Ukraine’s largest trading partners.
Trade turnover between the countries amounted to $151.123 million. Ukraine exported goods to Iraq worth $151.051 million, while imports of Iraqi products amounted to only $72 thousand.
The positive trade balance for Ukraine reached $150.979 million. Thus, virtually the entire bilateral trade turnover was formed by Ukrainian exports. The data are presented in the table accompanying the Experts Club analysis published on July 16, 2026.
For comparison, at the end of 2025, Ukraine’s trade turnover with Iraq was estimated at $392.836 million. Ukrainian exports amounted to $392.513 million, imports to $323 thousand, and the positive balance reached $392.190 million.
The trade figures confirm that Iraq remains a profitable sales market for Ukrainian companies. At the same time, the almost one-sided trade structure indicates a low level of mutual investment and industrial cooperation.
Iraq’s new agreements with the United States may become an opportunity to change this model. Even limited participation of Ukrainian enterprises in energy projects with a total declared value of up to $200 billion can significantly increase exports of high value-added products.
With the proper organization of trilateral cooperation, Iraq can gradually turn from a predominantly commodity market into a long-term industrial, energy, and infrastructure partner of Ukraine.
