Chevron and Iraq: A Battle Over Oilfield Terms

Key Details

• Field Significance:
• Makes up about 0.5% of the world's oil supply

• Nearly 10% of Iraq's output

• Sanctions Impact:
• U.S. sanctions on Lukoil due to Russia's actions in Ukraine

• Sanctions made it difficult for Lukoil to operate the field

• Current Status:
• Iraq took control of the field earlier this month
• Chevron seeks better terms before acquisition
• No final deal yet; Iraq's cabinet must approve

Chevron's Position

• Official Statement:
• Chevron does not comment on business deals
• Follows all applicable laws

• Potential Benefits:
• Already has plans to develop other fields in Iraq
• Iraq improving oil contracts to attract investment

Historical Context

• West Qurna 2 Project:
• One of the first deals Iraq made with oil companies after the 2003 U.S. invasion

• Pays less than other contracts in Iraq

• Iraq's Oil Output:
• Grown significantly since 2003
• Has not reached post-war high targets

Current Operations

• Basra Oil Company:
• State-run entity currently operating the field

• Ownership issue still being resolved

• Ongoing Talks:
• Many details still under discussion