Halliburton Company (HAL Quick QuoteHAL - Free Report) , a leading U.S.-based oilfield services firm, is engaged in major talks with Iraq and is close to finalizing a deal for the development of the Nahr Bin Omar oilfield. The state-owned oil company of Iraq, Basra Oil Company (BOC), has announced that Halliburton and the country’s oil ministry are anticipated to sign a confidentiality agreement in the coming days. Once the deal is signed, Iraq will present the necessary information related to the Nahr Bin Omar field to Halliburton, including the data on the installations at the field.

HAL’s Role in Developing Nahr Bin Omar Oilfield

Per the terms of the deal, HAL will support Iraq in increasing production at the Nahr Bin Omar field. BOC mentioned that the agreement with Halliburton should help raise production from the field to 300,000 barrels per day (bpd). Additionally, the oilfield services firm will help the country to produce nearly 300 million cubic feet of gas (MMcf) from this field. Currently, the field has a production capacity of 50,000 bpd.

BOC Aims to Reduce Iraq’s Gas Imports

BOC also aims to develop a gas project at the Nahr Bin Omar field in order to reduce the country’s gas import bill. The state-run oil company has chosen China Petroleum Engineering & Construction Corporation (“CPECC”) to develop the gas project aimed at producing 300 million standard cubic feet (mscf) of gas per day. The project is estimated to cost nearly $1.7 billion. However, BOC is in talks with CPECC to reduce the total cost of the project. BOC also mentioned that it is close to finalizing the agreement with CPECC regarding the gas project.

Update on West Qurna 1 Field Operations

Iraq’s state-owned oil company has also provided an update regarding the West Qurna 1 field, which is currently operated by PetroChina. Following ExxonMobil’s withdrawal from the field and Iraq’s energy sector in 2024, PetroChina became the largest stakeholder in the West Qurna 1 oilfield. According to the statement by BOC's officials, the field's current production of 550,000 bpd is expected to increase to 750,000 bpd by year-end 2025.

HAL’s Zacks Rank and Key Picks

HAL currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the energy sector are Sunoco LP (SUN Quick QuoteSUN - Free Report) , Equinor ASA (EQNR Quick QuoteEQNR - Free Report) and Cheniere Energy, Inc. (LNG Quick QuoteLNG - Free Report) . Sunoco and Equinor currently sport a Zacks Rank #1 (Strong Buy) each, while Cheniere Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores and distributors. Its current distribution yield is greater than that of the industry's composite stocks, providing unitholders with consistent returns.

Equinor ASA is one of the leading integrated energy companies globally and the second-largest supplier of natural gas in Europe. The company’s expansion in the renewable energy space positions it for long-term growth as more and more countries transition toward cleaner energy solutions to meet their climate goals. Its strategic pivot toward low-carbon energy solutions unlocks new revenue streams in the growing market for clean energy and carbon management solutions.

Cheniere Energy is involved in LNG-related businesses, which include LNG terminals and natural gas marketing. The company has achieved a milestone with the first production from the first LNG train of its Corpus Christi Stage 3 Liquefaction Project. The project, which includes seven midscale LNG trains, aims to expand the production capacity of the Corpus Christi Liquefaction facility. This expansion is expected to enhance Cheniere's position in the rapidly growing global LNG market, enabling it to meet the rising demand for LNG, both in the United States and internationally.