Iraq targets signing Chevron contract for West Qurna 2 field before end of 2026
Key Facts
Iraq’s oil minister 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, setting a target date for moving to a long-term agreement. Shafaq News Network 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 complete the contract details ahead of the planned signing date. The statement places the ongoing negotiations within a defined timeline, but does not announce that the contract has been signed or that new operating arrangements have begun. The field is among Iraq’s leading oil-producing assets, according to Oil Ministry estimates cited by the network.
The Oil Ministry estimates West Qurna 2’s recoverable reserves at more than 13 billion barrels, while its output ranges from 400,000 to 480,000 barrels per day. This represents about 10% of Iraq’s total crude production, according to ministry estimates published in the same report. The figures highlight the field’s scale in Iraq’s production system, combining large reserves with a substantial daily contribution to supply. The estimates give an output range rather than a single figure, with the upper end at 480,000 barrels per day. The minister’s statement did not link these figures to any immediate change in production as a result of the negotiations.
Russia’s Lukoil operated the field before state-owned Basra Oil Company took over its management temporarily, while Baghdad negotiated with Chevron on a long-term arrangement. The target of signing the contract before the end of 2026 is part of a transition from temporary management to a permanent contractual arrangement with the U.S. company. Reuters reported in December 2025 that the field produced about 470,000 barrels per day and accounted for about 9% of Iraq’s output, according to figures cited in an Investing.com report at the time. Those figures date to December 2025, while the ministry’s current estimates put output between 400,000 and 480,000 barrels per day and its share at about 10%. U.S. Energy Information Administration data also indicated that the field’s capacity reached 480,000 barrels per day in late 2023, with a projection that it would rise to 800,000 barrels per day after expansion, according to a July 2025 report.
Contractual return terms had previously emerged in negotiations over the project. In January 2026, Reuters reported that Chevron was seeking better returns before taking over the field, while the Oil Ministry said at the time that many details remained under discussion. In February, the company secured a year of exclusive negotiations over West Qurna 2, according to the headline of an EL7 article published on October 20. The minister’s current statement follows those developments, setting a target date for signing and announcing that talks would accelerate in the coming days. The statement did not provide details of the financial terms or final contract provisions. In July 2026, an earlier EL7 report covered an Iraqi plan with Chevron to build a strategic pipeline through Syria to bypass the Strait of Hormuz, a matter separate from the timing of the field’s operating contract.
The minister said the Oil Ministry would support Chevron, ExxonMobil, ConocoPhillips and other U.S. companies operating in Iraq by addressing obstacles facing their investments. He added that the government sought to attract U.S. companies and strengthen technology transfer and workforce training. The statements place negotiations over West Qurna 2 within a broader effort to encourage U.S. investment in Iraq’s oil sector. In the stock market, Chevron closed at $227.77 per share on November 2, according to EL7 daily data. That closing price does not indicate a market response to the minister’s statement, which was issued the following day. The next announced step is to accelerate talks in the coming days ahead of the targeted signing before the end of 2026.