Chevron Bets Big on Iraq's Oil Ambitions

Iraq plans to more than double its oil output in six years, aiming for between 8 million and 10 million barrels per day. To achieve this goal, Chevron has been working on securing deals with Iraq.

Chevron recently signed memorandums of understanding (MOUs) with the Iraqi government to enter two oil fields: West Qurna 2 and Nassiriya. The West Qurna 2 field currently produces 460,000 bpd, accounting for nearly 10% of Iraq's output and 0.5% of global supply.

Iraq nationalized the West Qurna 2 field earlier this year due to U.S. sanctions on its previous operator, Russia's Lukoil. The field holds an estimated 13 billion barrels of oil. Chevron aims to boost production in this field to between 750,000 and 800,000 bpd after taking over operations.

Chevron has also signed an agreement in principle with Iraq for the Nassiriya project, which includes four exploration blocks and the development of producing fields. The initial production capacity target for this project is 600,000 bpd within seven years of starting work.