Iraq Targets West Qurna 2 Contract Signing with Chevron Before End of 2026
Key Facts
Iraqi Oil Minister Bassem Mohammed Khudair al-Abadi said on November 3 that Baghdad had reached understandings with Chevron to sign a contract for the West Qurna 2 field before the end of 2026. The statement sets a target date for an agreement, but does not mean the contract has been signed or operating arrangements have already changed. Abadi discussed the contract with Joe Cook, an executive at the company, Shafaq News reported. The report quoted the minister as saying, "Iraq has reached understandings with U.S. energy company Chevron to sign a contract for the West Qurna 2 field before the end of 2026." He added that talks would accelerate in the coming days to finalize the contract ahead of the planned signing.
The negotiations matter because of the field's scale in Iraq's production. The Oil Ministry estimates its recoverable reserves at more than 13 billion barrels. Its output ranges from 400,000 to 480,000 barrels per day, according to ministry estimates published on November 3. That amounts to about 10% of Iraq's total crude production, according to the same figures. The output range places the field among the major assets whose operating and development terms could affect Iraqi supplies. The minister did not announce any immediate production change linked to the negotiations or an expected impact of the targeted contract on volumes.
State-owned Basra Oil Company temporarily took over operations at the field after Lukoil withdrew from operating it, while Baghdad negotiated a long-term arrangement with Chevron. Shafaq reported that disruption to the Russian company's operations followed U.S. sanctions, and that Iraq had halted payments and canceled crude shipments after force majeure was declared in November 2025. The current understanding is part of a process to move the field from temporary operations to a long-term contract with the U.S. company. On February 23, 2026, Iraq and Chevron signed two preliminary principles memorandums covering West Qurna 2, Nasiriyah and Balad. The first agreement between Basra Oil Company and Chevron provided for the transfer of management of West Qurna 2, while a separate framework allowed the contract to be transferred temporarily before being re-awarded after negotiations on a new contract, and granted the company exclusive negotiating rights for one year.
Cooperation between the two parties had taken a technical form before the operational contract was targeted. In September, Iraq signed an agreement with Chevron to provide technical consultancy to Basra Oil Company on developing West Qurna 2. The Iraqi company was negotiating the field's development under that agreement. Reuters reported on October 20 that Chevron was discussing the field with the Oil Ministry after Lukoil's withdrawal, while also considering development of four blocks in the Nasiriyah field. The report said Iraq's contractual framework was evolving from the arrangements used in the first licensing rounds in 2010 toward profit-sharing mechanisms instead of production-sharing contracts. This shift in contract formats makes details of the final agreement, including the return mechanism, among the points that will become clear as negotiations conclude.
The West Qurna 2 talks coincided with broader efforts to attract U.S. companies to Iraq's oil and gas sectors. Abadi said the Oil Ministry would address obstacles facing investments by Chevron, ExxonMobil, ConocoPhillips and other U.S. companies in Iraq. He added that the government wanted to benefit from the companies' expertise in developing fields, and expand technology transfer and workforce training. In parallel, Iraq was discussing with ExxonMobil a memorandum of understanding covering the Majnoon field, export infrastructure and a seawater supply project to support reservoir pressure. The project was designed to provide 2.5 million barrels per day of water, according to a Reuters report published on October 20.
West Qurna 2 remains an important part of Iraq's broader energy plans. The National reported that the field is central to Iraq's goal of raising crude production capacity to 6 million barrels per day by 2029. That goal places the field's development in the context of expanding production capacity, while the minister's statement did not specify a production expansion timetable or the scale of Chevron's investments under the anticipated contract. The near-term milestone announced by Abadi is to accelerate talks in the coming days. The target for signing the contract is before the end of 2026. The statement did not provide details of the financial terms or provisions of the final contract.