Chevron and Iraq: A Battle Over Oilfield Terms

Chevron is in talks with Iraq to take over the West Qurna 2 oilfield from Lukoil. This field is huge, making up about 0. 5% of the world's oil supply and nearly 10% of Iraq's output. The U. S. put sanctions on Lukoil because of Russia's actions in Ukraine. These sanctions made it hard for Lukoil to keep running the oilfield. Iraq took control of the field earlier this month. Now, Chevron wants better terms before buying it. Both sides are talking, but nothing is final yet. Iraq's cabinet would need to approve any new deal. Chevron said they don't comment on business deals but follow all laws.This deal could be big for Chevron. They already have plans to develop other fields in Iraq. Iraq has been improving its oil contracts to attract more investment. Companies like TotalEnergies and BP have already made big deals there. The West Qurna 2 project was one of the first deals Iraq made with oil companies after the U. S. invasion in 2003. It pays less than other contracts in Iraq. Iraq's oil output has grown a lot since then, but it hasn't reached the high targets set after the war. For now, the state-run Basra Oil Company is running the field while the ownership issue is sorted out. The talks are still ongoing, and many details are still being discussed.