ConocoPhillips Joins US Firms Vowing $60 Billion for Iraqi Deals

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessConocoPhillips Joins US Firms Vowing $60 Billion for Iraqi DealsConocoPhillips joined dozens of US firms from the energy, healthcare, finance and tech sectors in signing some $60 billion in deals to lift the Iraqi economy.Author of the article:Ruth Liao, Kevin Crowley and Sonya Dymova You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — ConocoPhillips joined dozens of US firms from the energy, healthcare, finance and tech sectors in signing some $60 billion in deals to lift the Iraqi economy.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe raft of agreements capped Iraqi Prime Minister Ali al-Zaidi’s weeklong visit to Washington, where President Donald Trump promised “massive” oil deals for one of OPEC’s oldest crude-producing nations. The Iraqi leader was on a mission to attract US investment and recast the country’s image as stable and business-friendly. The meetings also come after more than four months of conflict between the US and Iran that has disrupted shipping, industrial activity and economic growth around the Persian Gulf and beyond. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againFor the Trump administration, the discussions represented an opportunity to gain influence with Iraq and persuade al-Zaidi to disarm Iran-backed militias in his country. The US president earlier this year warned the Iraqi parliament not to elevate al-Zaidi’s opponent, former Prime Minister Nouri al-Maliki, to the leadership position, saying the latter was too close to Iran. “Our goals in the Middle East are to transform a region that’s been riven by too much conflict, and defuse those conflicts and replace them with commerce,” Energy Secretary Chris Wright said during a US Chamber of Commerce event on Friday.Halliburton Co., SpaceX’s Starlink, KBR Inc. and JPMorgan Chase & Co. were among the other companies that signed ceremonial agreements on Friday.In one of the most significant deals announced Friday, ConocoPhillips agreed to acquire a 42% stake in BP Plc’s giant Kirkuk oil-field complex in Iraq.ConocoPhillips’ deal involves an area holding the equivalent of more than 3 billion barrels, plus “additional exploration potential,” the Houston-based driller said in a statement. Financial terms were not disclosed but analysts at Barclays Plc estimated the purchase price at about $400 million. ConocoPhillips spokesman Dennis Nuss declined to comment on the terms. International oil explorers typically seek out partners for major projects such as Kirkuk to ease the financial burden and spread out the risks.Beyond the ConocoPhillips-BP pact, many of the agreements were considered preliminary or in early phases of development. Efforts to increase Iraqi crude output face several challenges, including the war’s disruption of shipping via the Strait of Hormuz, which the country relies upon for most of its exports. Chevron Corp. is part of a consortium looking to build a new pipeline to the Mediterranean to bypass the Persian Gulf. The Kirkuk complex currently produces about 328,000 barrels a day, with companies being rewarded for output above that level, Barclays said in a note. This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.“This compares favorably to Iraq’s traditional fee-per-barrel service contract structure,” Barclays analyst Betty Jiang wrote.Iraq is a keystone of BP’s renewed focus on oil and natural gas after a foray into renewables that tanked profits, triggered billions of dollars in writedowns and crushed the share price. For ConocoPhillips, Friday’s announcement marks a return to Iraq more than a decade after it left the OPEC nation.ConocoPhillips expects to fund the venture through the project’s own cash flow, meaning it “is not expected to require significant capital contributions.” —With assistance from David Wethe and Mitchell Ferman.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.