Sudani presides over Chevron signing for West Qurna 2, Nasiriyah and Balad fields

BAGHDAD — Prime Minister Mohammed Shia al-Sudani on Monday presided over the signing of two preliminary memoranda of principles between U.S.-based Chevron and Iraqi oil companies covering major fields in Basra, Dhi Qar and Salah al-Din.

The first memorandum was concluded between Basra Oil Company and Chevron regarding the transfer of management of the West Qurna 2 field. The second was signed with Dhi Qar Oil Company and North Oil Company for the development of the Nasiriyah field and four exploratory blocks in Dhi Qar, as well as development of the Balad field in Salah al-Din.

The signing ceremony was attended by U.S. Special Envoy Tom Barrack and Chargé d’Affaires Joshua Harris.

Sudani highlighted the importance of the agreements in advancing reforms in the oil sector and said they are expected to have a positive impact on economic conditions in Dhi Qar and Salah al-Din.

The Chevron deal follows the exit of Russia’s Lukoil from West Qurna 2 after U.S. sanctions disrupted its operations. In November 2025, Washington imposed sanctions on Lukoil and Rosneft as part of President Donald Trump’s push to increase pressure on Russia over the war in Ukraine. Lukoil declared force majeure at the field, signaling its inability to continue normal operations under international financial restrictions.

In January, Iraq’s cabinet instructed Basra Oil Company to assume operational control to avoid production disruptions at the field, which produces 460,000 to 480,000 barrels per day — about 9 percent of Iraq’s output and roughly 0.5 percent of global supply. The field holds an estimated 14 billion barrels in reserves.

Basra Oil Company and Lukoil signed a settlement agreement providing for the temporary transfer of the contract to Basra Oil Company and the settlement of all outstanding financial entitlements. A separate framework agreement between Basra Oil Company, Lukoil and Chevron allows for the contract to shift to Chevron upon completion of negotiations, granting Chevron exclusive negotiation rights for one year.

Earlier Monday, Sudani met a Chevron delegation led by Vice President Joe Koch to continue discussions on investing in the Nasiriyah field and potential cooperation on West Qurna 2. Sudani said Iraq “needs to achieve the required results from the ongoing discussions” between the Ministry of Oil and Chevron.

He pointed to plans to expand refining capacity and establish a petrochemical industry in Dhi Qar and other oil-producing areas. Chevron affirmed its commitment to long-term cooperation and support for Iraq’s goal of becoming a regional energy hub.