Fossil Energy – West Qurna 2 Oil Field
Chevron is unwilling to operate in Iraq on the terms of the Russian company Lukoil.
Chevron wants to take over the West Qurna-2 oil field on a profit-sharing basis.
After sanctions were imposed on its operator, Lukoil, the American company wants to take over Iraq’s largest oil field.
However, Reuters reports that the terms are more attractive than those offered to Lukoil. Baghdad previously nationalised this asset.
Lukoil produced crude oil at West Qurna-2 under previously concluded service agreements. It was one of the first companies to enter Iraq after the US invasion in 2003, receiving such favourable terms as a result.
Baghdad has now switched from service contracts to profit-sharing agreements in the hope of attracting investors. With a production target of 9-12 million bpd in 2025, this is unsurprising: Iraq was producing an average of just over 4 million bpd.
Over the past two years, TotalEnergies and BP have signed two joint investment agreements with Iraq worth $50 billion, agreeing to operate in the country under a profit-sharing agreement.
Clearly, Chevron wants these conditions for itself as well. The company declined to comment on future operating conditions at the field, stating only that it always adheres to corporate ethics and complies with the law.
Iraqi authorities have previously confirmed that they are in negotiations with Chevron.
