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Welcome to This Week in Iraq, your one-stop source for all of the most important Iraq news, curated by the editors of Iraq Oil Report. To sign up and receive this free newsletter in your inbox every week click here.
Top Stories
Iraq's crude exports in January held steady at 3.471 million bpd, virtually the same as December 2025, according to preliminary Oil Ministry data analyzed by Iraq Oil Report. Revenues appeared to increase, from $6.388 billion in December to an estimated $6.469 billion in January. Iraq's oil exports are constrained in part by the government's commitment to OPEC-plus production limits. After raising quotas every month through the last three quarters of 2025, the producers' group has so far held steady in the new year, while Iraq recently revised its compensation plan to make up for past over-production.
The Oil Ministry is pressing forward with an array of projects designed to capture and process associated gas that is produced along with crude oil at fields throughout southern Iraq. Ali Salman Majeed, the director general of the state-run South Gas Company, sits at the center of these efforts. In an interview with Iraq Oil Report at his office in Khor Al-Zubair, Majeed spoke about new sources of gas for the recently expanded Basra Gas Company (BGC) and gave status updates on gas processing plants slated for construction at Ratawi, Nassiriya, and Bin Omar.
Energy & Economy
BP is reportedly seeking partners in its development of Kirkuk-area oil fields under a deal signed in 2025 with the state-run North Oil Company and North Gas Company. Reuters reports the junior partners would share costs and provide development support, with BP remaining operator. The 25-year project includes Kirkuk's Baba and Avana domes as well as nearby Bai Hassan, Jambur, and Khabbaz fields, with an estimated $26 billion price tag to get the network of fields producing nearly 500,000 bpd.
Hyundai Livart has signed an $80 million deal for preliminary work on a seawater treatment plant in Basra, Iraqi News reports. The subcontract from Hyundai Engineering & Construction is for construction and site-preparation work on the Common Seawater Supply Project (CSSP), which in its first phase aims to deliver 5 million barrels per day (bpd) of water to more than a dozen fields in Basra, Missan, and Dhi Qar provinces. A part of TotalEnergies' Gas Growth Integrated Project, the CSSP promises to help transform southern Iraq’s oil sector by supplying water needed to boost crude production.
Naftkhana oil field operators have struck a $225 million deal with China Oil HBP intended to help develop the Diyala province field. YiCai Global reports the 18-month contract is a precursor to a three-year deal, starting with inspection and repairs of existing infrastructure, and subsequently providing engineering, procurement, construction, operation, and maintenance services. The field is operated by Shanghai-listed Geo-Jade Petroleum, via its Hong Kong-registered subsidiary, NK Petroleum, under a contract that was awarded in 2018 and signed in 2023.
A fire at the Baiji refinery has killed one worker and injured more than a dozen others. The Iraqi Oil Ministry in a statement on Facebook said operations were not impacted and firefighters put out the Feb. 9 fire. The Oil Ministry said the fire occurred during routine maintenance work. The refinery is still rebuilding after being taken offline during the war against the Islamic State militant group, when it was decimated by looting.
Trade organizations and parliamentarians are protesting newly enacted regulations aimed at capturing customs revenue and cracking down on evaders. Amwaj reports that there have been protests by traders and rolling strikes. The Baghdad Chamber of Commerce has also temporarily shut its office in an act of solidarity. Opponents say the automated systems that have been implemented are increasing import fees to the extent it is harming smaller businesses, stalling supply chains, and leaving shipping containers stuck in ports. The crackdown on low custom revenue and intentional evaders comes as Iraq deals with a financial crisis of expanded government spending and lower-than-expected oil prices.
Politics
Political blocs remain divided over government formation, though some in the Coordination Framework have reportedly suggested extending Prime Minister Mohammed Shia al-Sudani's government temporarily. Shafaq News cites an unnamed source from inside the Coordination Framework, who claims Sudani has received a proposal to extend his government by one year, "with specific and conditional powers," as a way to "get out of the political stalemate." The Coordination Framework, a coalition of Shia Islamist parties that forms the backbone of the current government, has already nominated former Prime Minister Nouri al-Maliki to once again lead the country, but his candidacy hit a major roadblock when U.S. President Donald Trump announced his opposition. Maliki has said he will only relinquish the nomination if a two-thirds majority of the Coordination Framework votes to take a different course. It is unclear how many of the Framework's constituent parties would actually support a temporary extension of Sudani's term.
The Coordination Framework is the single largest component of the State Administration Coalition, which is the multi-sectarian, multi-ethnic alliance of political blocs that make up the current Sudani-led government. Al-Mada reports that these "feuding parties" also met recently about forming a new government but failed to produce any breakthrough. The impasse has reportedly contributed to rising tensions between Shia Islamist parties, particularly the Maliki-led State of Law and Asaib Ahl al-Haq. Even with government-formation seemingly stalled, however, Parliament will begin forming permanent committees for the new term, according to Kurdistan24.
Qais al-Khazali recently visited Tehran to discuss government formation, Shafaq News reports. The leader of Asaib Ahl al-Haq, Khazali said his purpose was to reinforce Iraqi sovereignty and push back against Iranian interference in Iraq’s political decision-making.
The Central Bank of Iraq says it's working with the U.S. Treasury to improve controls on dollar flows. CBI Governor Ali al-Alaq met on Feb. 5 with U.S. Chargé d'Affaires Joshua Harris, Iraqi News reports. Alaq said he outlined steps that have been taken to regulate dollar sales. The U.S. has previously expressed concerns over Iran's ability to use Iraq as a financial lifeline to mitigate the impact of sanctions, and more recently, Washington has used its financial leverage to warn Baghdad against allowing Nouri al-Maliki to return as prime minister, according to Bloomberg.
Security
Iraq has received more than 2,000 alleged former fighters from the Islamic State militant group who had been detained in Syria, part of a process intended to investigate and prosecute them. The detainees were moved under arrangements involving the U.S.-led counter-IS coalition and are now being held in high-security Iraqi facilities, Alarabiya reports. Iraqi authorities have been preparing to house and process these detainees in secure facilities, while the Iraqi Supreme Judicial Council has already started investigative procedures against over 1,387 transferred ISIS members, with several thousand more expected, Iraqi News reports. These transfers are part of a broader effort to prevent mass escapes and reinforce secure detention after instability in northeast Syria’s prisons.
Iraq has taken possession of former U.S. air equipment held at Ain al-Asad Air Base, Janes reports. Armed Forces Chief of Staff Gen. Abdulamir Rashid Yarallah toured the facility on Feb. 9 and was seen on video inspecting three CH-5 long-range unmanned aerial vehicles (UAVs). The Iraqi Army Aviation Command, along with the Air Force and Iraqi special forces, have taken over control of the Anbar province base following the U.S. military's recent departure.
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