Chevron Signs Framework to Negotiate West Qurna 2 Development in Iraq

Overview

• Chevron and Iraq’s Basrah Oil Company signed a framework that opens confidential data sharing and sets an exclusive negotiation period for West Qurna 2.
• West Qurna 2 was previously operated by Russia’s Lukoil, whose activities were constrained by international sanctions.
• The framework’s implementation requires approval from Iraq’s Council of Ministers, with certain steps contingent on clearance from the U.S. Treasury’s OFAC.
• Iraq also announced agreements with Chevron covering four exploration blocks at the Nasiriyah field and the Balad field.
• The arrangement is an initial step that enables due diligence and talks, not a final development contract or transfer of operatorship.