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The Iraqi Ministry of Oil announced that its state-run Basra Oil Company had signed the contract with the US services provider for development of the two southern fields under directives from Prime Minister Ali al-Zaidi aimed at expanding national oil and gas output. Oil Minister Basim Mohammed Khudair al-Abadi attended the signing and stressed the strategic value of such partnerships in a ministry statement. The agreement forms part of a broader push to secure investment from leading international companies particularly those based in the United States.
The ministry’s statement detailed ambitious targets under the contract including lifting crude output at the Bin Umar field to 150,000 barrels per day within five years while raising associated gas production to 300 million standard cubic feet per day. At the Sindbad field crude output is projected to reach between 80,000 and 100,000 barrels per day with associated gas climbing to between 240 million and 260 million standard cubic feet per day. These goals align with ongoing efforts to optimise under-developed assets in the Basra region.
Al-Abadi said the ministry remains committed to concluding agreements with leading international energy companies particularly US firms and pledged continued government support to facilitate investment and achieve the country’s energy objectives. He also highlighted Halliburton’s long-standing presence in Iraq noting that the company has operated in the country since 2003. The minister’s comments came as part of the official statement announcing the deal.
Iraq intends to lift its oil output to 7 million barrels per day within the next three years according to a recent Iraqi government statement. This objective would amount to a rise of roughly 55 to 65 percent compared with current production levels of 4.2 million to 4.5 million barrels per day. The southern fields centred on Basra account for the bulk of national output and remain central to meeting these ambitions.
The latest contract finalises arrangements that began with a heads of agreement signed in early 2025 followed by cabinet approval and subsequent technical discussions between Basra Oil Company and Halliburton. Earlier pacts had focused on data sharing to build models for boosting production and associated gas investment in the two fields. Iraqi News Agency reporting on the initial steps had confirmed the framework for what became the five-year integrated management deal.
Regional disruptions earlier in 2026 had slashed output from southern fields to around 800,000 barrels per day before partial recovery according to Reuters reports on the impact of Strait of Hormuz closures. Officials from Basra Oil Company had indicated that pre-crisis southern production could support exports near 3.4 million barrels per day once conditions stabilised. The Halliburton agreement is viewed as one element in reinforcing that capacity over the coming years.
