Chevron Poised for Major Expansion in Iraq's Oil Fields

Chevron is entering exclusive talks with Iraq to take over the West Qurna 2 oilfield from Russia’s Lukoil, Iraqi Oil Minister Hayan Abdel-Ghani announced to Kurdish television channel Rudaw. The U.S. firm's involvement could nearly double the oilfield's output to between 750,000 and 800,000 barrels per day.

The West Qurna 2 field, nationalized by Iraq in January due to U.S. sanctions on Lukoil, is one of the world's largest, contributing about 10% of Iraq's oil production and 0.5% of the global supply. This move came after Lukoil encountered operational challenges internationally.

Chevron has secured a one-year exclusive negotiation period to potentially take over the project from the Basra Oil Company, currently managing the field. According to three sources cited by Reuters, Chevron has been actively encouraging Iraq to enhance returns on West Qurna 2.