US firms sign $60bn energy deals with Iraq, including Syria pipeline

US and Western oil companies signed a series of energy deals with Iraq at the US-Iraq Business Summit in Washington on Friday, with total agreements exceeding $60 billion. The deals aim to boost Iraq's oil production and develop alternative export routes to reduce dependence on the Strait of Hormuz, which has faced disruptions amid US-Iran tensions. Source: CNBC

Key agreements

• Chevron will lead the rehabilitation of the Kirkuk-Baniyas crude oil pipeline to Syria, with an initial capacity of 2 million barrels per day, according to the US State Department. Source: Al Jazeera
• BP and ConocoPhillips are set to announce investments worth billions (or tens of billions) in Iraqi energy projects, though exact figures were not disclosed. Source: CNBC
• Other deals span technology and healthcare, including an agreement with Starlink to operate in Iraq. Source: Al Jazeera

Geopolitical context

The pipeline to Syria's Mediterranean coast would provide an export route bypassing the Strait of Hormuz, which once handled a fifth of global oil. US Ambassador to Turkey Tom Barrack said it would "make the Strait of Hormuz an afterthought." Source: Al Jazeera Iraq's Prime Minister Ali al-Zaidi affirmed an "open-door policy" for investors. Source: Al Jazeera