Iraq approves oil and power deals with US, Qatari firms

BAGHDAD — Iraq’s cabinet has approved a package of oil and electricity measures, clearing the way for major deals with U.S. and Qatari companies, including an agreement with Chevron to raise crude output and a study of two long-planned export pipeline routes.

At its session on Saturday, the Council of Ministers approved a set of agreements between the Oil Ministry — through Basra Oil Company and North Oil Company — and Chevron, covering an advance payment, crude supply and a guarantee letter, intended to boost production.

It also authorized Basra Oil Company to enter preliminary agreements with a consortium of U.S.-based Capital TI, Qatar’s UCC and Chevron, which will study and compare two proposed strategic export pipeline routes: Basra-Haditha-Kirkuk-Ceyhan and Basra-Haditha-Baniyas. The studies would carry no financial or contractual obligation for the ministry at this stage, the cabinet said, and it left open the option of adding a state-owned company to the group. To move the pipeline forward, the cabinet exempted consulting services for the Basra-Haditha line from Iraq’s 2025 procurement rules, letting Basra Oil Company award a consulting contract to KBR.

The cabinet also approved adding 25,000 barrels per day to Iraq’s oil supply arrangement with China and opening a dedicated account to keep Iraq meeting its obligations and secure continued Chinese financing for the projects the deal supports.

In the electricity sector, the cabinet authorized the Electricity Ministry to sign an implementation agreement with General Electric on a plan to shore up Iraq’s power supply and develop generation and transmission. The GE deal would take effect alongside a planned framework agreement between Iraq and the United States once both are signed, the government said, and run until the related contracts are concluded.