Chevron's Iraq Venture: A High-Stakes Bid for Oil Supremacy
The oil-rich country of Iraq aims to boost its production from 4 million barrels per day (bpd) before the war with Iran to between 8 and 10 million bpd within six years. To achieve this, Iraq is seeking assistance from major global oil companies.
Chevron has signed memorandums of understanding (MOUs) with the Iraqi government to enter two oil fields in the country: West Qurna 2 and Nassiriya. Chevron could take operational control of one of the world's largest oil fields, West Qurna 2, which currently produces 460,000 bpd.
The field holds an estimated 13 billion barrels of oil and Iraq wants to boost production in this field to between 750,000 and 800,000 bpd after Chevron takes over operations. For Nassiriya, Iraq is targeting an initial production capacity of 600,000 bpd within seven years of starting work.
Chevron's move adds upside and risk as it would enhance the long-term investment case for the company. However, this also exposes Chevron to potential future disruptions to the Strait of Hormuz, where Iraq currently relies almost entirely on oil exports.