Chevron has entered exclusive year-long negotiations with the Iraqi government to operate the West Qurna 2 oilfield. The agreement provides the company with exclusive rights to negotiate a new operating contract.
Iraq nationalized the asset after U.S. sanctions were imposed on the previous operator, Russia’s Lukoil. Under the proposed framework, the contract will transfer temporarily to the state-owned Basra Oil Company before final assignment to Chevron.
West Qurna 2 is one of the world’s largest oilfields. The site currently produces 480,000 barrels per day. While the deal offers a major growth driver for Chevron, it also increases the company’s geopolitical risk profile in the region.