Chevron Set to Play Key Role in Iraq's Oil Production Ambitions

Iraq has set ambitious goals for its oil industry, aiming to more than double its production in six years. The country recently sent a delegation to Saudi Arabia seeking a higher OPEC production quota, targeting output of between 8 million and 10 million barrels per day (bpd) by the end of the decade. This would be a significant increase from the 4 million bpd produced before the war with Iran slowed oil flows through the Strait of Hormuz.

Chevron has signed memorandums of understanding (MOUs) with the Iraqi government to enter two oil fields, West Qurna 2 and Nassiriya. The company could assume operational control of one of the world's largest oil fields, which currently produces 460,000 bpd, accounting for nearly 10% of Iraq's output and 0.5% of global supply.

Iraq needs assistance from major global oil companies to provide technical expertise and capital required to develop its fields to their full potential. In addition to Chevron, fellow oil giants TotalEnergies and BP have also recently signed new deals with Iraq. The country currently relies almost entirely on the Strait of Hormuz to export its oil.