Iraq · Country watch

BP, PetroChina Cut Budgets; Dollar Rises

BP and PetroChina reduce budgets for Iraq oil projects, while the US dollar rises against the Iraqi dinar, impacting financial conditions.

Florent Kalfon · 5 November 2026 · 6 articles read

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Business conditions in Iraq are mixed today. BP and PetroChina's budget cuts in oil projects may slow energy sector growth, while the rising US dollar increases import costs, impacting financial conditions.

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In this briefing BP · PetroChina · Rumaila oilfield · Hussein Kazem La'ibi · Amara Gas Separation Station · Maysan Oil Company · US dollar · Iraqi dinar

Companies

Energy

BP, PetroChina Cut Budgets for Iraq Oil Projects

BP and PetroChina have decided to reduce the monthly budgets for two major oil projects at the Rumaila oilfield in southern Iraq, according to Iraqi News. This decision is part of a broader strategy to manage costs amid fluctuating oil prices. The Rumaila oilfield is one of Iraq's largest, and the budget cuts may impact production levels and timelines. The financial adjustments reflect the companies' cautious approach to investment in the region.

Impact Energy sector operators in Iraq face potential production delays and cost management challenges due to reduced budgets.

Sources: Iraqi News ↗

Energy

Amara Gas Station Begins Trial Production

The Amara Gas Separation Station, operated by Maysan Oil Company, has commenced trial production at an initial rate of 3,000 barrels per day, reports Iraq Business News. Director General Hussein Kazem La'ibi stated that the station is following a phased plan to gradually increase output. This development is part of Iraq's strategy to enhance its gas production capabilities and reduce reliance on imports.

Impact Energy companies in Iraq benefit from increased local gas production, impacting supply chains and reducing import needs.

Sources: Iraq Business News ↗

Markets

Finance

US Dollar Rises Against Iraqi Dinar

The exchange rate for the US dollar against the Iraqi dinar increased slightly on Thursday in both Baghdad and Erbil, according to Iraqi News. This rise in the dollar's value could affect import costs and inflation rates in Iraq, influencing purchasing power and economic stability. The currency fluctuation reflects ongoing market dynamics and external economic pressures.

Impact Importers and businesses in Iraq face higher costs due to the increased exchange rate of the US dollar.

Sources: Iraqi News ↗

Nothing significant reported today in Regulation · Disruption · Internal tension · Safety & health · Trade · Politics.