WASHINGTON / RankWire.AI / – U.S. President Donald Trump and Iraqi Prime Minister Ali al-Zaidi held conversations on broader economic and energy collaboration at the White House on Tuesday. Their focus was on oil, natural gas, electricity, trade, and private sector investment. Trump indicated that the United States anticipates engaging in numerous commercial agreements with Iraq, including those related to crude oil production. Neither government disclosed contract values, project timelines, nor a comprehensive list of signed accords. This meeting was the highlight of al-Zaidi’s official visit to Washington.
Al-Zaidi traveled accompanied by ministers, senior officials, and business representatives to discuss five key economic sectors. Iraqi officials identified energy, transport, technology, healthcare, and education as priority topics. Baghdad has instructed its oil, electricity, and communications ministries to give precedence to qualified American firms. The Iraqi government also explored banking and insurance reforms with U.S. financial institutions and business groups. Officials described the visit as a step toward establishing practical commercial ties between Iraq and the United States.
Energy discussions included plans to increase crude oil output and develop natural gas resources for domestic consumption. Iraq also aims to attract investment in power generation and grid transmission, where supply shortages continue to be a major concern for the public. The cabinet approved an agreement with U.S.-based HKN Energy to develop the Himreen oilfield in northern Iraq. Additionally, it authorized the Electricity Ministry to finalize a broad cooperation deal with General Electric, covering electricity generation, grid capacity, and transmission infrastructure.
Energy initiatives drive investment negotiations
Chevron has engaged in discussions with Iraqi authorities regarding significant upstream projects, including the West Qurna 2 oilfield. Earlier this year, Baghdad took steps to replace Russia’s Lukoil as the operator of this field. Iraqi officials have also been in talks with Exxon Mobil, HKN Energy, and other U.S. firms. Al-Zaidi stated that his government intends to substantially increase oil production within three years. Iraq possesses large crude reserves and remains a founding member of OPEC. Any production boost must adhere to the OPEC+ supply framework applicable to Iraq.
At the White House, al-Zaidi expressed Iraq’s desire for a fair OPEC share of production and reaffirmed the country’s intention to stay within the group. He linked this request to Iraq’s reconstruction needs after years of conflict with the Islamic State. Al-Zaidi estimated the damage at over $400 billion, noting that some displaced Iraqis still lack permanent homes. Iraq depends heavily on oil revenue to fund government operations, reconstruction, and public services. Consequently, oil and gas investment remains a key focus of the economic agenda during the Washington visit.
Iraq progresses on new crude export routes
Iraq has made progress on developing alternative routes for crude exports. The Oil Ministry signed an initial agreement with a U.S.-Qatari consortium to conduct feasibility studies on the Kirkuk-Baniyas pipeline, which would run from oilfields near Kirkuk to Syria’s Mediterranean coast. Additionally, Iraq has initiated the Basra-Haditha pipeline project, with an intended capacity of 2.5 million barrels per day. These initiatives are part of Iraq’s broader energy infrastructure development plan.
The discussions in Washington also extended beyond energy, covering cooperation in communications, technology, transportation, and infrastructure projects. Iraqi officials reported that the delegation met with U.S. government representatives, financial institutions, and corporate leaders during the visit. Both nations emphasized economic collaboration as a central element of their bilateral relationship. Public statements following the White House talks confirmed ongoing negotiations, though they did not specify final terms for all projects currently under review.