In a strategic move that could redefine the energy map of the Middle East, Chevron has entered into exclusive talks with the government of Iraq to negotiate entry to the West Qurna 2 oil field. West Qurna 2 oil field. This field, considered one of the largest in the world, has recently been nationalized after the forced exit of the Russian oil company Lukoil, affected by US sanctions.
Chevron gains priority in future exploitation
The agreement signed with the state-owned Basra Oil Company (BOC) gives Chevron a full year of exclusivity to define the terms of an eventual acquisition. According to Iraqi authorities, the negotiation priority includes access to sensitive data on the field and the possibility of taking over the operation when the transfer is completed.
This move follows the announcement of the $53 billion purchase of Hess, reflecting Chevron’s global ambition to consolidate its presence in key assets, both in the United States and in producing regions with geopolitical potential.
Lukoil and the changing landscape after sanctions
Lukoil had operated the West Qurna 2 West Qurna 2 field for years, but sanctions imposed by Washington in response to the conflict in Ukraine forced the company to negotiate its exit. The Iraqi government announced an amicable agreement with the Russian firm to facilitate the temporary handover of the operation to BOC, before assigning it permanently to a new operator.
Chevron must await final approval from Iraq’s Council of Ministers and other authorities, including the U.S. Office of Foreign Assets Control (OFAC), to close the transaction.
An asset representing 10% of Iraq’s production
West Qurna 2 is not just any field. With a capacity representing about 10% of Iraq’s total oil production and approximately 0.5% of the world’s crude oil supply, this asset has become a coveted piece in the global energy chess game.
Chevron’s interest not only responds to its appetite for expanding operations, but also to a regional diversification strategy. Sources close to the negotiations indicated that the economic and fiscal terms will be decisive to advance in the final contract.
Iraq seeks stability in its oil operations
For Baghdad, handing control of the field to a company with technical expertise and financial backing such as Chevron could ensure operational continuity and stability in a sector that represents the heart of its economy. At the same time, the country is seeking to reposition its oil industry. oil industry after years of internal conflicts and international tensions.
The next few weeks will be key in determining whether Chevron consolidates its entry into one of the most valuable fields on the planet. For now, exclusive access already marks a decisive advantage over other international players.
Source: Reuters
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