ERBIL, Kurdistan Region - Iraq has reached agreements with US energy giant Chevron on the development of the West Qurna 2 oilfield with aims to finalize the contract by the end of November, as Baghdad seeks to expand US investment in its energy sector.
Oil Minister Bassem Mohammed Khudair al-Abadi “confirmed on Tuesday that agreements have been reached with Chevron regarding the West Qurna 2 oil field contract,” state-run Iraqi News Agency reported.
Mohsen al-Mandalawi, the deputy prime minister for energy affairs, received a Chevron delegation in Baghdad, calling for the “rapid removal of obstacles” in the contractual terms to complete the agreement, and directed Abadi to hold a joint meeting to finalize the contract no later than the end of November, according to a statement from his office.
Abadi confirmed the signing of the contract in a statement received by state media, noting the agreement to “continue discussions on the development contract for the Nasiriyah oil field and the four exploration blocks.”
West Qurna 2, located northwest of Basra, stands as one of the largest oilfields globally, with estimated recoverable reserves of around 13 billion barrels and production capacity of up to 460,000 barrels per day.
The latest developments form part of Baghdad's broader effort to strengthen economic ties with Washington and attract American investment in Iraq's oil and energy industries.
During his July visit to Washington, Prime Minister Ali al-Zaidi oversaw the announcement of 48 agreements, memorandums of understanding and cooperation arrangements between Iraqi and US public and private sector entities.
The US Chamber of Commerce said the agreements and partnerships announced during the visit exceeded $60 billion and involved more than 50 arrangements with companies including Chevron, ExxonMobil, ConocoPhillips, Shell and Halliburton. The package covered energy, infrastructure, technology and other sectors.
“We are trying to transform the resources of Iraq into jobs and into prosperity,” Zaidi said at the US-Iraq business summit, adding that Baghdad was pursuing an “open-door policy” toward companies interested in investing in the country.
During the visit, Zaidi also met Chevron executives and called on the company to accelerate and expand its operations in Iraq, particularly in crude production, refining and diversifying export routes.
Chevron's potential takeover of West Qurna 2 follows the withdrawal of Russian oil company Lukoil in November 2025 after Western sanctions disrupted its operations and payments.
Despite large reserves, Iraq continues to face mounting fuel shortages driven by disruptions in the Strait of Hormuz - a strategic waterway through which around 95 percent of Iraqi crude transited prior to the war - even as oil production has recovered to near pre-war levels, exceeding 3.4 million barrels per day (bpd) in October.
The war has also had domestic ramifications as US oil companies, as well as fields in the Kurdistan Region, were targeted by Iranian drones and missiles during the nearly six-week war between Iran, Iraq, and Israel, which began in late February.
A drone attack in March struck a compound in Iraq's Basra province housing foreign energy workers, resulting in fires in warehouses belonging to US firms Halliburton and KBR. US-based HKN, Gulf Keystone, DNO, and ShaMaran initiated production or operational shut-ins due to regional security escalations and drone attacks.
