Chevron has begun exclusive negotiations with Iraq over the massive West Qurna 2 oilfield, bringing it closer to taking over the asset from Russian producer Lukoil, which is under sanctions, according to Reuters.
Chevron said the discussions will involve sharing confidential information and could significantly expand its presence in Iraq, following Baghdad’s decision to nationalise the West Qurna 2 field.
The office of Iraqi Prime Minister Mohammed Shia al-Sudani confirmed that an agreement had been signed between Chevron and the Basra Oil Company (BOC).
Under the arrangement involving BOC, Lukoil, and Chevron, the West Qurna 2 contract will be temporarily transferred to BOC. Once new contractual terms are finalized, BOC will then reassign the project to Chevron, according to the prime minister’s office.
Chevron has been granted exclusive rights to negotiate for one year. However, the agreements still require approval from Iraq’s Council of Ministers, and certain steps depend on additional clearances, including from the US Office of Foreign Assets Control (OFAC), Chevron noted.
The company emphasized that securing competitive financial terms will be key in the upcoming talks. Sources familiar with the matter said Chevron has been urging Iraq to enhance the project’s returns as a prerequisite for acquiring West Qurna 2 from Lukoil.
Recently, Iraq approved an amicable settlement with Lukoil to transfer operations of the giant West Qurna 2 oilfield to BOC after Baghdad nationalized the field in response to US sanctions on the Russian firm. The move comes as talks continue with Chevron over potential involvement in the project.
