KEY POINTS
- Chevron has secured a 12-month exclusive negotiation window to potentially take over Iraq’s West Qurna 2 oil field.
- Sanctions on Lukoil have pressured the Russian firm to divest international assets, opening the door for U.S. companies.
- The move fits Chevron’s aggressive expansion strategy aimed at growing reserves and production for decades ahead.
Chevron Corp. has positioned itself as the leading contender to assume control of Iraq’s second-largest oil complex after signing preliminary agreements with Basra Oil Co. for exclusive negotiations over the West Qurna 2 field.
The arrangement grants Chevron a 12-month window to negotiate terms, conduct due diligence, and exchange confidential data, pending approvals from U.S. and Iraqi authorities.
The future of the project has been uncertain since Lukoil PJSC, which holds a 75% stake in the field, faced U.S. sanctions last year that effectively forced it to consider selling overseas assets.
The 480,000-barrel-per-day oilfield has attracted interest from multiple international players, including Exxon Mobil Corp., highlighting its strategic value.
Competing Deals and Strategic Pressure
In January, Lukoil agreed in principle to sell much of its global portfolio to Carlyle Group, though that arrangement remains non-binding.
U.S. policymakers have indicated a preference for American firms to acquire Lukoil’s assets, a stance reportedly supported by Iraqi officials seeking faster project development and greater geopolitical stability.
The potential acquisition aligns with Chevron’s broader strategy to expand reserves and boost long-term output. The company recently acquired Hess Corp. for roughly $48 billion, increased exploration spending by half, and is negotiating with Kazakhstan to extend its operating license for the Tengiz project beyond the early 2030s.
