The Iraqi Ministry of Oil has officially activated a development contract with U.S.-based HKN Energy for the Hamrin oilfield. The project targets a peak production of 140,000 barrels per day and will capture 40 million standard cubic feet of gas per day under a zero-flaring policy. 

An Iraqi delegation led by Prime Minister Ali Faleh al-Zaidi traveled to the United States this past week to secure a historic strategic economic partnership, which culminated in the finalization of major oil production and alternative pipeline agreements.

The final field development contract for the Hamrin oilfield was signed in Baghdad on July 9 by Iraq's North Oil Company and HKN Energy. 

Ministry of Oil Green-Lights Strategic Boost 

The official activation gives the green light for the cooperation initiated in the presence of Minister of Oil Basim Mohammed Khudair Al-Abadi, with the ministry stating that it “aligns with the country’s broader strategy to maximize energy resources, meet domestic demand, and expand export capacity.” 

The ministry said that the activation represents “a significant step in the government’s efforts to boost domestic oil and gas production.” 

The project will ramp up Hamrin field production to a peak of 140,000 bpd while generating 40 million standard cubic feet of gas per day. 

The Ministry prioritized a "zero-flaring" policy by using the captured gas to power field operations and reinjecting the surplus to maintain reservoir pressure and enhance extraction efficiency. 

Partnerships to Drive Modernization and Local Job Creation

“Beyond the technical objectives, the deal is viewed as a signal of Iraq’s commitment to improving its investment climate,” the statement added.

According to the Ministry, the partnership underscores an ongoing effort to attract major U.S. and European corporations to modernize the country’s energy infrastructure. 

The project will create local jobs and foster domestic firm collaboration to support Iraq's long-term energy security and economic development. 

Iraq Signs $60B in U.S. Corporate Deals to Overhaul Infrastructure 

During the visit, an Iraqi delegation finalized 48 partnerships worth over $60 billion so far, focusing on energy, technology, and infrastructure. 

Key deals include a U.S.-backed rehabilitation of the Kirkuk-Baniyas pipeline to bypass the Strait of Hormuz, along with upstream oil developments involving Chevron and ConocoPhillips.