Iraq has signed a framework agreement with US energy major Chevron, marking the company’s renewed presence in the country with plans to explore and develop new oil fields.
The deal, signed in Baghdad between the Oil Ministry and Chevron, covers four exploration blocks in the southern Nasiriyah project as well as the development of the Balad oil field and additional prospects. Prime Minister Mohammed Shia al-Sudani attended the ceremony, considering the agreement reflects Iraq’s new approach to attracting international companies.
Al-Sudani stressed that his government is committed to improving the investment climate and highlighted Chevron’s role in transferring technology, applying environmental standards, and supporting local communities.
Chevron Vice President Frank Mount, who led the company’s delegation, said Iraq offers major opportunities in both resources and workforce capacity, affirming Chevron’s plan to establish a long-term partnership, citing the country’s improved security conditions and the company’s ability to bring advanced technologies.
In 2021, Iraq’s National Oil Company was authorized to negotiate with Chevron over projects in Nasiriyah, in the southern province of Dhi Qar. At the time, officials said the development plan aimed to reach an initial production capacity of 600,000 barrels of crude oil per day within seven years.
The latest signing is among the most visible US oil investments in Iraq in recent years, as Baghdad seeks to diversify partners and accelerate development of untapped reserves.
It follows other recent agreements with American energy firms. In July, Iraq signed a contract with SLB (formerly Schlumberger) to expand gas production at the Akkas field, targeting 100 million standard cubic feet per day. Earlier this year, Al-Sudani also held talks with Baker Hughes CEO Lorenzo Simonelli on expanding energy technology projects.
Iraq has also secured multi-billion-dollar deals with other oil majors in the past two years, reversing a period of retreat. New terms have lured companies such as France’s TotalEnergies and the UK’s BP, whose combined investments exceed $50 billion.
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