Chevron secured year of exclusive talks on West Qurna 2 in February
Key Facts
Chevron secured exclusive negotiating rights for a year over Iraq's West Qurna 2 oilfield in February 2026, Asharq Al-Awsat reported, under arrangements concerning a giant field previously operated by Lukoil. Preliminary agreements signed that month included development of the Nassiriya field, according to The National. Their scope extended to 4 exploration blocks in Dhi Qar province in southern Iraq. They also included the Balad field in Salahuddin province, as part of the broader package of talks with the U.S. company. The arrangements followed Lukoil's declaration of force majeure in November after it was hit by sanctions, according to Asharq Al-Awsat.
In a subsequent development in the negotiations, The National reported in July 2026 that Basra Oil Company had signed a non-disclosure agreement with Chevron to govern data sharing and the evaluation of West Qurna 2. The evaluation involves sharing technical data on the field between the two sides. It also includes sharing financial data as part of arrangements to examine the oil asset. Iraq's oil ministry said the step aimed to "pave the way for future partnership talks," according to the newspaper. Alongside the Basra Oil Company track, Chevron had signed agreements with state-owned Dhi Qar Oil Company and North Oil Company, according to the newspaper's report on the signing of the February agreements.
West Qurna 2 has estimated recoverable reserves of about 14 billion barrels, according to The National's February report. The field's output at the time ranged between 460,000 and 480,000 barrels per day, according to the same report. The Nassiriya field, also covered by Chevron's talks, produced about 90,000 barrels per day, according to the newspaper's July report. Iraqi Oil Minister Hayan Abdul Ghani said West Qurna 2's output could rise after Chevron takes over operations, Asharq Al-Awsat reported in February. The minister put potential output at between 750,000 and 800,000 barrels per day, linking the increase to the company taking over operation of the field.
The February agreements were preceded by a negotiating framework Chevron signed with Iraq's oil ministry, according to a report published by The National in August of the previous year. The framework allowed the company to assess potential investment opportunities in Iraq. It also established exclusive negotiations between Chevron and the ministry over those opportunities, according to the newspaper. Chevron Vice President Frank Mount said at the time that "Iraq is a major crude oil producer and has significant oil and gas resources." Mount's description of Iraq's resources came as part of the announcement of the framework that paved the way for the company to assess opportunities in the country.
The field talks coincided with pressure on Iraqi oil exports from the closure of the Strait of Hormuz, according to The National's July report. Exports stood at 4.2 million barrels per day in February before falling to 1.45 million barrels per day in May. The newspaper attributed the decline to the strait's closure. In the same report, it cited The Wall Street Journal as saying Chevron would join a consortium of investors to study rebuilding an Iraqi pipeline. The pipeline route under consideration runs from Kirkuk in northern Iraq to the Syrian port of Baniyas, in a project separate from the oilfield evaluations.
Chevron tied its next steps to the economic terms emerging from negotiations. The company said, according to Asharq Al-Awsat, that "competitive economic terms will be essential to the upcoming negotiations." It also said subsequent steps were subject to further approvals, according to The National. Those include approval from the U.S. Treasury Department's Office of Foreign Assets Control, in the context of arrangements for the field previously operated by Lukoil. Across the sector, Iraq's announced plan includes raising oil production capacity to more than 6 million barrels per day by 2029, according to Asharq Al-Awsat.