The US energy group Chevron has signed agreements to explore a potential takeover of Iraq’s West Qurna-2 project, the country’s second largest oil field. The framework deal was signed with the state-owned Basra Oil Company (Iraqi News Agency, 23/02/2026). The preliminary agreements allow for the exchange of confidential data and set out a framework for an exclusive negotiation period between Chevron and the Iraqi state-run company regarding the project.
- The West Qurna-2 field produces over 460 kb/d, representing nearly 0.5% of global oil output and about 10% of Iraq’s total crude production. The field’s recoverable reserves are estimated at around 14 Gbl. Following UK and US sanctions imposed in October 2025, Lukoil declared force majeure on the West Qurna-2 contract. The field was Lukoil’s largest foreign asset, in which the Russian company held a 75% stake.
- The Iraqi cabinet recently approved an “amicable settlement” with Russia’s Lukoil concerning the transfer of operations of the oil field to BOC. The Russian company has until 28 February 2026 to sell its assets under the sanctions (KEI, 20/02/2026).
Under the agreement between BOC, Lukoil, and Chevron, the West Qurna-2 contract will be temporarily transferred to BOC, which will then assign it to Chevron once the new contract terms are finalized. Chevron will hold exclusive negotiation rights for one year.
In addition, another agreement was signed with Dhi Qar Oil Company and North Oil Company for the development of the Nasiriyah field and four exploration blocks in Dhi Qar Governorate, as well as for developing the Balad field in Salah Al-Din Governorate.