By Ahmed Rashid and Mu'ayyad Hamid

Baghdad, July 13 - Iraqi Prime Minister Ali Zaidi will seek to secure major US investments in his country's oil, gas and electricity sectors during a visit to the White House this week after the Iran war severely damaged crude oil production and the country's public finances.

Analysts say the Iraqi government has increased its focus on diversifying international partnerships to better cope with regional turmoil, a topic expected to be high on the agenda during his visit to the United States from July 13 to 18.

This effort represents one of the most visible attempts in years to bring significant American investment into a sector long dominated by Chinese, Russian and European companies, although Iraqi officials reject suggestions that Baghdad is distancing itself from its close ally Tehran in order to strengthen ties with Washington.

“The Iran war was a turning point, as it highlighted the dangers of over-reliance on a single regional partner,” said Ahmed Younis, a political analyst based in Baghdad.

He added, "Al-Zaydi believes that the energy sector is the fastest way to deepen cooperation with Washington."

Iraqi and American officials said those efforts include negotiations with Chevron over major exploration and production projects, support for U.S.-backed energy and liquefied natural gas projects, security guarantees for American operators in Iraq’s Kurdistan region, and reviving plans for strategic pipelines linking Iraq to Mediterranean markets.

Among the initiatives recently approved by the cabinet headed by al-Zidi was an agreement with the US-based company HKN Energy to develop the Hamrin oil field in northern Iraq. The government also authorized the Ministry of Electricity to conclude a comprehensive cooperation agreement with General Electric aimed at expanding Iraq's electricity generation and transmission infrastructure.

These deals are expected to be the focus of a meeting between al-Zaidi, the millionaire who took office in May, and US President Donald Trump, who has offered strong support to Iraq’s new prime minister.

Al-Zaidi said in a statement before the visit, "We have directed the ministries of oil, electricity and communications to give priority to reputable American companies operating in the energy, communications, technology and development sectors."

* Focus on American companies

Analysts say attracting enough investment to develop oil fields and fix infrastructure obstacles that prevent sustainable production gains will not be easy.

An official document seen by Reuters indicated that the Iraqi cabinet in early June instructed the state-owned Basra Oil Company to exempt U.S. energy companies, which are currently in discussions about energy projects, from certain regulatory requirements related to preliminary agreements.

“The recent decisions regarding Chevron, the American operators in the Kurdistan Region, and other American energy projects reflect a deliberate shift in policy,” said Mohammed Abbas, a former director at Basra Oil and currently an energy consultant.

He added, "Al-Zaidi is using Iraq's energy sector to strengthen ties with Washington and change the prevailing impression among some major American energy companies that Iraq is a difficult environment for large-scale investments."

Four Iraqi oil officials familiar with the talks with U.S. energy companies, including Chevron, ExxonMobil, HKN and others, said the move underscores Baghdad’s broader efforts to deepen economic cooperation with the United States.

This communication comes at a time when Iraq faces the same challenge as other oil-producing countries: attracting investment and expanding production while remaining committed to the OPEC+ alliance's production limits.

Iraq possesses some of the world's largest crude oil reserves, but long-standing production constraints have hampered ambitions to increase revenues in a rapidly growing country.

Negotiations with Chevron formed one of the most important elements of Iraq’s strategy in this regard.

Earlier this year, Chevron entered into exclusive negotiations with Iraq over the giant West Qurna 2 oil field, after Baghdad sought to find an alternative to Russia’s Lukoil as the field’s operator, potentially giving the American company control of one of Iraq’s most productive assets.

Several Iraqi lawmakers and analysts have indicated that the government’s energy initiatives are intended to send a signal to Washington that Iraq has become a more attractive destination for large-scale international investment after years of security concerns, bureaucratic obstacles, and legal disputes.

The security situation has also improved markedly since the defeat of the Islamic State group about a decade ago, but occasional drone attacks and tensions in the region continue to pose risks to energy infrastructure.

Iraqi officials say security around key oil facilities has been strengthened since the start of the Iran war, with additional measures taken to reassure foreign energy companies.

Murad Ismail, a member of the Oil and Gas Committee in the Iraqi Parliament, pointed this out, saying, "Prime Minister al-Zaidi comes from a background connected to companies and business, and he understands that winning over American energy companies, especially in light of the fragile security situation in the region, is not easy."