The American oil company Chevron has entered the next phase of obtaining operator rights for one of Iraq’s largest oil fields — West Qurna 2.

Access to Information and Agreements

Iraq’s Ministry of Oil announced that the state-owned Basra Oil Company (BOC), which is currently managing the field, has signed a confidentiality agreement with Chevron. This agreement grants Chevron access to key information necessary to evaluate the West Qurna 2 field, including seismic studies, production data, reservoir models, and cost structures.

History of Field Management

Since last year, BOC has been temporarily managing the field after the Russian company LUKOIL ceased operations due to U.S. sanctions imposed on the company and its foreign subsidiaries.

Negotiations and Next Steps

In February, Chevron was granted a year to complete exclusive negotiations for operator rights. The latest agreement allows BOC to open its data rooms to Chevron and regulates the exchange of information for field evaluation and negotiations on future agreements. Once the main terms of the service contract between Chevron and the Iraqi authorities are agreed upon, the next step will be the signing of a final agreement in accordance with the country’s legislation.

Significance of the Field

The recoverable reserves of West Qurna 2 are estimated at over 13 billion barrels. In 2025, production at the field ranged from 460,000 to 480,000 barrels of oil per day, which is roughly 10% of Iraq’s total oil output. Since 2023, LUKOIL had been working to increase production to around 800,000 barrels per day.

Investment Climate

Iraqi authorities have announced significant investment opportunities for international oil companies, including Chevron. The Ministry of Oil reaffirmed its commitment to creating a safe and attractive investment environment for major foreign investors and to removing administrative barriers to investment.

Development of Cooperation

With the appointment of new Prime Minister Ali Al-Zaidi at the end of April, the government has accelerated the approval of development contracts with international companies. Al-Zaidi aims to boost oil production to generate the revenues needed for the country’s economic and infrastructure recovery.

Additional Negotiations

The Ministry of Oil has also held talks with Qatar’s UCC Holding and American investor TI Capital, hoping for their participation in energy and infrastructure projects in Iraq.