Iraqi and American companies have signed a series of agreements to capture natural gas that is usually flared in Iraqi oil fields and utilize it for local electricity production, reducing dependence on neighboring Iran for energy. Strengthening Iraq's energy independence and reducing reliance on Iran is a key goal of U.S. foreign policy. Iraq is one of the largest producers of oil and gas in the world, but its fields have suffered from a lack of investment for years. Since 2018, Washington has had to grant Iraq exemptions from sanctions imposed on Iran, allowing Baghdad to purchase electricity from Tehran.
The agreements, signed in Washington in the presence of Iraqi Prime Minister Mohammed Shayaa al-Sudani and U.S. officials, aim to encourage investment in processing 300 million cubic feet of natural gas daily from the Bin Umar oil field. The Al-Halfaya Gas Company, part of the Iraqi Ruban Al-Safina Group, signed an agreement with the South Gas Company of Iraq to invest in gas processing. Among the American companies that signed memoranda of understanding with Iraqi entities for the projects are KBR, Baker Hughes, and General Electric. The companies did not disclose the anticipated monetary value of the agreements.
