Chevron to take over Iraq’s West Qurna-2 after Lukoil exit

Shafaq News- Baghdad (Updated at 16:00)

Iraq on Monday signed two preliminary memoranda of principles with US energy major Chevron covering the West Qurna-2, Al-Nasiriyah, and Balad oil fields.

According to caretaker Prime Minister Mohammed Shia Al-Sudani's office, the first agreement between Basra Oil Company and Chevron provides for the transfer of management of the West Qurna-2 field. A second agreement with Dhi Qar Oil Company and North Oil Company covers development of the Al-Nasiriyah field, four exploration blocks in Dhi Qar, and the Balad field in Saladin, and amends a previous arrangement by adding Al-Nasiriyah.

US Syria Envoy and Ambassador to Turkiye Tom Barrack later said the agreement reflects President Donald Trump’s vision of promoting “peace through shared prosperity” in the Middle East, describing Chevron’s involvement as a sign of confidence in Iraq’s stability and investment climate.

Today marks a significant milestone for the people of Iraq and for one of America’s leading energy companies, Chevron. This partnership reflects strong support for @POTUS vision of promoting peace through shared prosperity in the Middle East. Chevron’s commitment to stewarding a… pic.twitter.com/gsDCtAEK4y

— Ambassador Tom Barrack (@USAMBTurkiye) February 23, 2026

Basra Oil Company and Russia’s Lukoil previously signed a settlement to temporarily transfer the West Qurna-2 contract to Basra Oil Company and resolve outstanding financial dues. A separate framework agreement between Basra Oil Company, Lukoil, and Chevron allows the contract to shift temporarily before reassignment to Chevron following negotiations on a new contract, granting Chevron exclusive negotiation rights for one year.

Lukoil declared force majeure at West Qurna-2 in November 2025 after Western sanctions disrupted its operations, according to Reuters, leading Iraq to halt payments and cancel several crude shipments. The field, discovered in 1973, produces between 400,000 and 480,000 barrels per day –nearly 10 percent of national output– and holds more than 13 billion barrels of recoverable reserves. Lukoil also moved to sell its overseas assets, including fields in Iraq, citing restrictions imposed on the company and its subsidiaries.

Read more: Russia’s Lukoil turmoil deepens risks for Iraq’s West Qurna-2 oilfield