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Iraq Oil And Gas Market Size and Share
Market Overview
| Study Period | 2020 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 12.39 Billion |
| Market Size (2030) | USD 15.46 Billion |
| Growth Rate (2025 - 2030) | 4.53 % CAGR |
| Market Concentration | Medium |
Major Players *Disclaimer: Major Players sorted in no particular order. Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
Iraq Oil And Gas Market Analysis by Mordor Intelligence
The Iraq Oil And Gas Market size is estimated at USD 12.39 billion in 2025, and is expected to reach USD 15.46 billion by 2030, at a CAGR of 4.53% during the forecast period (2025-2030).
Robust proven reserves of more than 145 billion barrels and expansion targets beyond 6 million bpd underpin sustained upstream spending, while integrated gas‐processing projects convert previously flared gas into value-adding revenue streams. The re-entry of Western majors, the acceleration of construction of seawater injection systems, and a shift toward profit-sharing contracts further reinforce the outlook for growth in Iraq's oil and gas market. Midstream build-outs that remove export bottlenecks and monetize associated gas complement upstream momentum, and service providers able to deliver lifecycle solutions gain a competitive advantage. However, OPEC+ quotas, political frictions, and infrastructure deficits temper near-term production gains even as strategic mega-projects promise long-term upside.
Key Report Takeaways
- By sector, upstream operations commanded 76.9% of the Iraq oil and gas market share in 2024, while midstream posted the fastest growth at a 5.2% CAGR through 2030.
- By location, onshore activities accounted for a 92.5% slice of the Iraq oil and gas market size in 2024, while offshore exploration is advancing at a 6.9% CAGR.
- By service, construction services led with a 60.3% revenue share in 2024; decommissioning is expanding at a 7.2% CAGR to 2030.
Iraq Oil And Gas Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline | |||
|---|---|---|---|---|---|---|
Accelerated
capacity-expansion target to >6 mbpd by 2029
Accelerated
capacity-expansion target to >6 mbpd by 2029
| +1.2% | National, concentrated in southern fields (Basra, Maysan) | Medium term (2-4 years) | (~) %
Impact on CAGR Forecast:
+1.2%
|
Geographic
Relevance
:
National,
concentrated in southern fields (Basra, Maysan)
|
Impact
Timeline
:
Medium
term (2-4 years)
|
Re-entry
of Western majors via mega-deals (BP, TotalEnergies)
Re-entry
of Western majors via mega-deals (BP, TotalEnergies)
| +0.8% | National, with focus on Kirkuk, Basra regions | Long term (≥ 4 years) | |||
Profit-sharing
contract regime attracts new investors
Profit-sharing
contract regime attracts new investors
| +0.6% | National, particularly greenfield developments | Medium term (2-4 years) | |||
Gas-flaring
capture boosts domestic gas supply & revenues
Gas-flaring
capture boosts domestic gas supply & revenues
| +0.5% | Southern Iraq, Basra governorate primarily | Short term (≤ 2 years) | |||
Common
Seawater Supply Project unlocks southern field output
Common
Seawater Supply Project unlocks southern field output
| +0.4% | Southern Iraq, Rumaila-West Qurna corridor | Medium term (2-4 years) | |||
New
Iraq–Turkey export pipeline enhances evacuation capacity
New
Iraq–Turkey export pipeline enhances evacuation capacity
| +0.3% | Northern Iraq, Kurdistan region | Long term (≥ 4 years) | |||
| Source: Mordor Intelligence | ||||||
Accelerated Capacity-Expansion Target Drives Infrastructure Investment
Iraq aims to lift output beyond 6 million bpd by 2029, compelling a surge of capital into drilling, gathering, and water-injection systems across West Qurna-1, Rumaila, and Zubair. Chinese EPC firms, such as CPECC, dominate early contracts; however, execution hinges on reliable electricity and sufficient injection water, which remain scarce in Basra. The capacity push supports incremental demand for rigs, OCTG, and digital reservoir management tools, keeping the Iraqi oil and gas market on an upward trajectory, even amid quota constraints.
Western Majors’ Re-Entry Reshapes Competitive Dynamics
BP’s USD 25 billion Kirkuk agreement and TotalEnergies’ USD 27 billion Basra package bring advanced EOR expertise, large-scale financing, and integrated gas solutions that are not available from the lowest-cost bidders alone. Their presence elevates ESG standards, accelerates gas monetization, and encourages co-investment from regional NOCs, reinforcing long-run resilience of the Iraq oil and gas market.
Profit-Sharing Contracts Attract Risk Capital
The shift from cost-plus technical service contracts to profit-sharing terms offers operators a direct slice of production revenue, aligning incentives toward efficiency and longer‐cycle field optimization. European independents and North American firms have already pre-qualified for the 2025 licensing round, signaling renewed appetite for Iraq's oil and gas market opportunities under the revised fiscal regime.
Gas-Flaring Capture Unlocks Domestic Revenue Streams
The expansions of the Basra Gas Company and the Ratawi gas center together add more than 1 bcf/d of capacity, converting waste gas into feedstock for power plants and petrochemicals. The incremental supply alleviates an 8 GW electricity shortfall, improves export carbon intensity, and stabilizes state fuel budgets, reinforcing demand across the Iraq oil and gas market.[1]Ministry of Electricity, “Generation Capacity Data 2025,” moelc.gov.iq
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline | |||
|---|---|---|---|---|---|---|
Political
instability & Baghdad-Erbil disputes
Political
instability & Baghdad-Erbil disputes
| -0.9% | National, particularly Kurdistan region | Long term (≥ 4 years) | (~) %
Impact on CAGR Forecast:
-0.9%
|
Geographic
Relevance
:
National,
particularly Kurdistan region
|
Impact
Timeline
:
Long
term (≥ 4 years)
|
Electricity
& water scarcity at project sites
Electricity
& water scarcity at project sites
| -0.7% | National, acute in southern production areas | Medium term (2-4 years) | |||
OPEC+
quota limits near-term production growth
OPEC+
quota limits near-term production growth
| -0.5% | National production planning | Short term (≤ 2 years) | |||
Dependence
on Chinese EPCs poses supply-chain risk
Dependence
on Chinese EPCs poses supply-chain risk
| -0.4% | National, concentrated in major projects | Medium term (2-4 years) | |||
| Source: Mordor Intelligence | ||||||
Political Instability Creates Investment Uncertainty
Revenue-sharing tensions between Baghdad and Erbil have already shut down 450 kbpd of pipeline exports and complicate financing for new ventures. Investors factor in higher risk premiums, which can delay FIDs and dilute near-term gains in the Iraq oil and gas market.[2]State Organization for Marketing of Oil, “Pipeline Export Statistics 2024,” somo.oil.gov.iq
Infrastructure Deficits Constrain Operational Efficiency
Intermittent grid power forces operators to install diesel generators, which add USD 2–3/bbl to lifting costs, while limited freshwater necessitates the use of expensive treatment units for EOR. These shortcomings elevate breakeven thresholds across the Iraq oil and gas market and slow upgrade schedules.
Segment Analysis
By Sector: Upstream Dominance Faces Midstream Acceleration
Upstream operations retained a 76.9% market share in the Iraqi oil and gas sector in 2024, thanks to low lifting costs of under USD 10/bbl at Rumaila and Kirkuk. Yet the midstream build-out is pacing a 5.2% CAGR to 2030 as processing hubs like Ratawi and Basra Gas drive incremental value from associated gas previously flared. Downstream remains the smallest slice but gains momentum from refinery revamps designed to cut product imports. The Iraq oil and gas market size for midstream assets is expected to increase in parallel with pipeline and storage expansions that debottleneck exports and feed petrochemical schemes.
In the second half of the period, integrated upstream-midstream packages, such as TotalEnergies’ Gas Growth Integrated Project, are expected to stabilize cash flows and free up capital for enhanced oil recovery, thereby bolstering the long-term resilience of the Iraqi oil and gas market.
Note: Segment shares of all individual segments available upon report purchase
By Location: Onshore Fields Drive Growth Despite Offshore Potential
Onshore assets in Basra, Maysan, and Kirkuk accounted for 92.5% of national output in 2024 and continue to anchor the size of the Iraq oil and gas market as mature giants undergo water-injection upgrades. Offshore acreage in the Persian Gulf, however, is set to outpace onshore with a 6.9% CAGR as 12 newly awarded blocks transition into appraisal drilling. This diversification protects the Iraqi oil and gas market against surface-access limitations and offers service providers a niche in marine logistics.
As offshore projects ramp up, operators will lean on subsea tie-backs and FPSOs that complement existing southern export terminals, supporting both capital formation and technology transfer into the Iraq oil and gas market.
By Service: Construction Leads While Decommissioning Accelerates
Construction activities generated 60.3% of the revenue in 2024, driven by seawater injection plants, pipelines, and new processing capacity. Chinese EPCs deliver turnkey solutions that compress schedules and sustain the momentum of growth in the Iraqi oil and gas market. Decommissioning, although still emerging, is projected to post a 7.2% CAGR as wells drilled in the 1970s reach the end of their life. Baker Hughes and Weatherford are scaling plug-and-abandonment capabilities that comply with evolving environmental standards, thereby deepening their service breadth within the Iraqi oil and gas market.[3]Baker Hughes, “Well Decommissioning Contracts in Iraq,” bakerhughes.com
Lifecycle spending now spans new build, maintenance, and retirement, signaling the sector’s transition into a mature phase where value migrates toward optimization and environmental stewardship within the Iraq oil and gas industry.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Southern governorates produced almost 70% of national crude in 2024, with Basra alone exceeding 2.5 mbpd through BP–CNPC, Lukoil–Inpex, and ExxonMobil–PetroChina ventures.[4]BP plc, “Rumaila Operating Report 2024,” bp.com Access to the Al-Basra Oil Terminal and multiple single-point moorings translates into lower evacuation costs, reinforcing the South’s dominance in the Iraq oil and gas market. Completion of the Common Seawater Supply Project is poised to lift southern plateau capacity by another 1 mbpd by 2028, lengthening asset life and stabilizing output profiles.
Northern Iraq contributes roughly 450,000 barrels per day (kbpd) from assets such as Kirkuk, Taq Taq, and Shaikan; however, pipeline outages have curtailed export flexibility since 2023. BP’s redevelopment plan could double Kirkuk capacity over 15 years, while the potential resolution of the Iraq–Turkey pipeline arbitration would remove a major volume bottleneck. Gas resources in the Kurdistan Region remain underutilized, suggesting potential upside for integrated gas-to-power ventures that could diversify the Iraqi oil and gas market.
Central governorates host several undeveloped discoveries totaling more than 5 billion barrels. Security and infrastructure shortfalls have limited progress to date, but tender rounds scheduled for 2025 aim to attract new capital with profit-sharing terms. Proximity to domestic refineries and demand centers offers a strategic foothold for operators seeking balanced exposure across the Iraq oil and gas market.
Competitive Landscape
Market Concentration
International oil companies pair Western technology with Asian financing in high-stakes upstream projects, giving consortia such as BP–CNPC and TotalEnergies–QatarEnergy a significant competitive advantage in reservoir management and integrated gas schemes. Chinese EPC contractors, such as CPECC, win the bulk of infrastructure contracts by bundling engineering, procurement, and construction at competitive prices that smaller rivals struggle to match. This two-tier structure shapes procurement patterns throughout the Iraq oil and gas market.
Service majors Schlumberger, Halliburton, and Baker Hughes compete aggressively in high-end segments, including digital oilfield solutions, complex completions, and plug-and-abandonment work. Their proprietary technologies deliver performance enhancements that outweigh higher unit costs, appealing to operators seeking to maximize ultimate recovery in the Iraqi oil and gas market. Niche players offering artificial lift, corrosion management, or subsea hardware exploit specialized gaps left by larger firms, preserving a moderately fragmented landscape.
Offshore exploration, unconventional resource appraisal, and gas-to-power integration represent emerging arenas where new entrants could secure anchor positions if they can marshal capital and expertise. The growing importance of ESG metrics also tilts contract awards toward contractors with low-carbon credentials, reinforcing the shift toward integrated and sustainable solutions throughout the Iraq oil and gas industry.
Iraq Oil And Gas Industry Leaders
1 Exxon Mobil Corporation
2 BP PLC
3 PJSC Lukoil Oil Company
4 PetroChina Company Limited
5 PetroChina Company Limited
*Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- September 2025: TotalEnergies has approved the USD 27 billion Gas Growth Integrated Project, which combines gas, petrochemicals, seawater treatment, and solar power in Basra.
- September 2025: In a significant move, French energy giant TotalEnergies has entrusted China Petroleum Engineering and Construction Corporation (CPECC) with a pivotal contract to construct a gas processing facility at the Atawi field, located in southern Iraq.
- August 2025: The Council of Ministers in Iraq has greenlit a contract for the Common Seawater Supply Project (CSSP-ITT-05), entrusting South Korea's Hyundai Engineering & Construction (Hyundai E&C) with the task.
- February 2025: BP signed a USD 25 billion agreement to rehabilitate Kirkuk, including the addition of new processing plants and gas-utilization facilities.
Table of Contents for Iraq Oil And Gas Industry Report
1. Introduction
- 1.1Study Assumptions & Market Definition
- 1.2Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Landscape
- 4.1Market Overview
- 4.2Market Drivers
- 4.2.1Accelerated capacity-expansion target to more than 6 mbpd by 2029
- 4.2.2Re-entry of Western majors via mega-deals (BP, TotalEnergies)
- 4.2.3Profit-sharing contract regime attracts new investors
- 4.2.4Gas-flaring capture boosts domestic gas supply & revenues
- 4.2.5Common Seawater Supply Project unlocks southern field output
- 4.2.6New Iraq–Turkey export pipeline enhances evacuation capacity
- 4.3Market Restraints
- 4.3.1Political instability & Baghdad-Erbil disputes
- 4.3.2Electricity & water scarcity at project sites
- 4.3.3OPEC+ quota limits near-term production growth
- 4.3.4Dependence on Chinese EPCs poses supply-chain risk
- 4.4Supply-Chain Analysis
- 4.5Regulatory Landscape
- 4.6Technological Outlook
- 4.7Crude-Oil Production & Consumption Outlook
- 4.8Natural-Gas Production & Consumption Outlook
- 4.9Installed Pipeline Capacity Analysis
- 4.10Unconventional Resources CAPEX Outlook (tight oil, oil sands, deep-water)
- 4.11Porter's Five Forces
- 4.11.1Bargaining Power of Suppliers
- 4.11.2Bargaining Power of Buyers
- 4.11.3Threat of New Entrants
- 4.11.4Threat of Substitutes
- 4.11.5Competitive Rivalry
- 4.12PESTLE Analysis
5. Market Size & Growth Forecasts
- 5.1By Sector
- 5.1.1Upstream
- 5.1.2Midstream
- 5.1.3Downstream
- 5.2By Location
- 5.2.1Onshore
- 5.2.2Offshore
- 5.3By Service
- 5.3.1Construction
- 5.3.2Maintenance and Turn-around
- 5.3.3Decommissioning
6. Competitive Landscape
- 6.1Market Concentration
- 6.2Strategic Moves (M&A, Partnerships, PPAs)
- 6.3Market Share Analysis (Market Rank/Share for key companies)
- 6.4Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)
- 6.4.1Exxon Mobil Corporation
- 6.4.2BP PLC
- 6.4.3China Petroleum & Chemical Corporation (Sinopec)
- 6.4.4PJSC Lukoil Oil Company
- 6.4.5State Organization for Marketing of Oil (SOMO)
- 6.4.6Petroliam Nasional Berhad (Petronas)
- 6.4.7TotalEnergies SE
- 6.4.8China National Petroleum Corporation / PetroChina
- 6.4.9ENI SpA
- 6.4.10Shell plc
- 6.4.11Gazprom Neft PJSC
- 6.4.12Halliburton Company
- 6.4.13Schlumberger NV
- 6.4.14Baker Hughes Company
- 6.4.15Basra Oil Company
- 6.4.16KAR Group
- 6.4.17Dana Gas PJSC
- 6.4.18Genel Energy plc
- 6.4.19Weatherford International plc
7. Market Opportunities & Future Outlook
- 7.1White-space & Unmet-Need Assessment
Iraq Oil And Gas Market Report Scope
The Iraq oil and gas market report includes:
Key Questions Answered in the Report
What is the current Iraq oil and gas market size?
The Iraq oil and gas market size reached USD 12.39 billion in 2025 and is forecast to hit USD 15.46 billion by 2030.
How fast is production expected to grow?
National output targets exceed 6 million bpd by 2029, underpinning a 4.53% CAGR for the overall market.
Which segment is expanding the quickest?
Midstream infrastructure, mainly gas processing and pipelines, is pacing a 5.2% CAGR through 2030.
Why are Western majors returning?
Profit-sharing contracts and mega-project opportunities such as the Gas Growth Integrated Project improve long-term economics for technology-intensive operators.
How does gas-flaring reduction benefit Iraq?
Captured associated gas supplies power plants, cuts fuel imports, and generates new revenue streams while lowering carbon intensity.
What infrastructure project is critical for southern fields?
The Common Seawater Supply Project will deliver 5 million bpd of treated water for enhanced oil recovery, sustaining plateau production in Basra-area giants.
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