Chevron's Bold Move: Transforming Iraq's Oil Output

Iraq may double output at its West Qurna 2 oilfield following Chevron's potential takeover. Amidst pursuit of heightened oil production, Iraq's collaboration with Chevron marks another stride in aligning with Western energy interests, distancing from Russian firm Lukoil due to ongoing sanctions.

Iraq is on the verge of nearly doubling its oil production at the West Qurna 2 field, as Chevron initiates exclusive discussions to assume control from Russia's Lukoil, according to statements by Iraq's oil minister. This pivotal move is positioned to boost Iraq's daily output to a staggering 800,000 barrels.

The country, historically impacted by political instability, is eager to ramp up oil and gas production. Chevron's entry is anticipated to increase capacity, with Iraq remaining a formidable player in the OPEC+ alliance. Although ambitious post-war targets haven't been met, Iraq's output steadily climbed to over 4 million bpd by 2025.

This strategic alignment with Chevron underscores a broader intention to strengthen ties with Western interests, especially given the sanctions facing Lukoil amid the Ukraine conflict. The proposal awaits the green light from both Iraq's cabinet and U.S. regulatory authorities.

(With inputs from agencies.)