Iraq and Chevron sign deal to develop West Qurna 2 oilfield

Financial outlets present the Chevron–Iraq deal as a large upstream growth opportunity that could sharply increase Iraqi oil output and shift a sanctioned Russian asset into Western hands. They stress the potential for Chevron to double production at West Qurna 2 and secure a valuable stake in a giant, low-cost field. They also highlight that the deal fits a wider pattern of Western oil majors picking up Russian positions constrained by sanctions.

• •Chevron is negotiating a stake in West Qurna 2 that would give it a lead role in developing one of Iraq’s largest oilfields.
• •Iraq’s oil minister has said Chevron’s plan could roughly double West Qurna 2 production compared with current levels.
• •Western sanctions on Lukoil have made it harder for the Russian company to invest and operate in Iraq, opening space for Chevron.
• •The preliminary agreement gives Chevron exclusive talks, which investors see as a sign that a full operating contract is likely.
• •Higher output from West Qurna 2 under Chevron could add substantial low-cost barrels to global supply and support Iraq’s export revenues.