Chevron's Strategic Move: A New Era for Iraq's Oil Production

Chevron is set to nearly double output at Iraq's West Qurna 2 oilfield to 800,000 barrels per day. The U.S. company enters exclusive talks to take over operations from Russia's Lukoil amidst Iraq's efforts to boost oil production. OPEC+ member Iraq targets 6 million bpd by 2029.

Chevron is poised to significantly bolster Iraq's oil output as it enters exclusive talks to operate the West Qurna 2 oilfield, potentially doubling production to 800,000 barrels per day. The move is part of Iraq's strategy to ramp up oil and gas production after years of political instability which saw major firms withdrawing from the region.

According to Oil Minister Hayan Abdel-Ghani, the U.S. company has secured exclusive negotiation rights for one year, potentially gaining control of a field that contributes almost 10% of Iraq's total production and 0.5% of the global supply. Chevron's expansion in Iraq comes as part of its broader international growth strategy.

This development aligns Iraq more closely with Western energy interests, replacing Russia's sanctioned Lukoil within broader geopolitical tensions involving Ukraine. The shift from Lukoil to Chevron at West Qurna 2 follows Iraq's amicable settlement with the Russian firm, sanctioned by the U.S. government, further binding Baghdad to Washington's energy and foreign policy strategies.

(With inputs from agencies.)