Chevron has entered exclusive negotiations with Iraq’s Basra Oil Company to acquire a stake in West Qurna 2, one of the world’s largest onshore oilfields located in southern Iraq.
The field holds roughly 14 billion barrels of recoverable reserves, a figure that is an order of magnitude higher than the 1.5 billion barrels previously reported. West Qurna 2 currently produces between 460,000 and 480,000 barrels per day, underscoring its operational significance.
The opportunity arose after U.S. sanctions forced Russian operator Lukoil to divest its interest. Lukoil declared force majeure in November 2025 and began selling its international assets. Iraq’s cabinet approved an amicable settlement in January 2026 that transferred operational control to BOC.
Chevron has been granted exclusive negotiation rights for one year and must secure approvals from Iraq’s Council of Ministers and potentially the U.S. Treasury’s Office of Foreign Assets Control. The deal remains in a preliminary negotiation phase; final terms and contract transfer are pending.
Strategically, the transaction would deepen Chevron’s presence in the Middle East, complementing its existing projects in Iraq and the Eastern Mediterranean. For Iraq, securing a U.S. partner could boost production and attract investment while maintaining state control through BOC.
The negotiations reflect broader geopolitical shifts, with U.S. sanctions reshaping ownership of key assets in the region. Chevron’s pursuit of West Qurna 2 signals confidence in Iraq’s production potential and the company’s willingness to invest in high‑reserve fields.
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