Chevron Pressures Iraq for Better Terms Amid Oil Field Negotiations

Chevron is negotiating with Iraq to improve returns at West Qurna 2 oilfield after nationalization due to U.S. sanctions on Lukoil. Iraq aims to attract investment, increasing output while switching to profit-sharing contracts. Talks with Chevron are ongoing as Lukoil faces a February deadline to sell its assets.

Chevron is in discussions with Iraq to secure better returns from the West Qurna 2 oilfield, following its nationalization due to U.S. sanctions on Lukoil. The negotiations come as part of Iraq's efforts to attract more investment by enhancing oil contract terms.

The Iraqi government seized control of the oil field, one of the world's largest, after difficulties arose for Lukoil to operate under international sanctions. Top oil companies are now drawn to Iraq following recent improvements to contractual terms, with major investments pledged by TotalEnergies and BP.

While Chevron and the Iraqi oil ministry continue talks, the outcome hinges on cabinet approval. This move would deepen Chevron's involvement in Iraq's oil sector, marking its latest expansion effort in the region. Lukoil has a February deadline to divest its assets amid ongoing geopolitical pressures.

(With inputs from agencies.)