Chevron Eyes Major Expansion in Iraq with Potential West Qurna 2 Acquisition

Key Facts

1Chevron signed a preliminary agreement with Basra Oil Company to discuss the acquisition of the West Qurna 2 oilfield.

2The field was previously operated by Russia’s Lukoil before its operations were transferred to the Iraqi state.

3The agreement allows for the exchange of confidential data and sets an outline for a period of exclusive negotiations.

Chevron has signed a preliminary agreement with Iraq's Basra Oil Company to discuss the potential acquisition of the West Qurna 2 oilfield, one of the largest in the world. The field was previously operated by Russia’s Lukoil before its operations were transferred to the Iraqi state. The new agreement establishes a framework for the exchange of confidential data and sets the stage for a period of exclusive negotiations between the parties. Iraq is actively seeking a major international partner to manage and develop the field's massive reserves following Lukoil's exit. For Chevron, acquiring such a significant producing asset would substantially boost its long-term production capacity and global reserves. While the deal is bullish for the company's growth profile, market participants remain mindful of the persistent geopolitical risks associated with operating in Iraq.