Chevron has secured one year of exclusive negotiations to take over management of Iraq’s West Qurna 2 oil field, following the withdrawal of Russian operator Lukoil after U.S. And British sanctions disrupted its international operations. The agreement does not yet transfer long-term operatorship to Chevron; it sets a framework for negotiations on a new contract.
Under the arrangement, Iraq’s state-owned Basra Oil Company will temporarily assume the contract from Lukoil and could later assign it to Chevron once the parties agree on commercial and operational terms. Basra Oil Company and Lukoil also agreed to settle outstanding financial obligations, subject to approval by Iraq’s Council of Ministers.
West Qurna 2 is located in southern Iraq and has estimated recoverable reserves of about 14 billion barrels. The field was producing roughly 460,000 barrels per day, equivalent to about 9% of Iraq’s national output, and its development plan contemplated raising production to 800,000 barrels per day.
The Chevron agreement is part of a broader package covering Iraq’s energy sector. The company also signed preliminary arrangements involving development of the Nasiriyah oil field, four exploration blocks in Dhi Qar province and the Balad oil field in Salahaddin province. Iraq later signed a nondisclosure agreement with Chevron to allow technical and financial data to be exchanged as the company evaluates West Qurna 2, which remains under state management pending the outcome of the negotiations.
The one-year negotiating period gives Chevron time to assess the asset and agree on the terms of any final partnership, but the eventual transfer remains conditional on those negotiations and the required Iraqi approvals.