Iraq in Talks With Chevron and ExxonMobil on Major Energy Projects
Iraq is conducting negotiations with US energy majors Chevron (CVX) and ExxonMobil (XOM) to develop key oilfields and infrastructure. Chevron is discussing taking over the West Qurna 2 oilfield following the exit of Russia's Lukoil due to sanctions, along with developing four blocks in the Nasiriyah field. Meanwhile, discussions with ExxonMobil under a memorandum of understanding cover the Majnoon field, export infrastructure, and a 2.5 million barrels per day seawater supply project aimed at maintaining reservoir pressure.
The discussions come as Iraq shifts its contractual framework from traditional service contracts introduced in 2010 toward profit-sharing mechanisms rather than production-sharing agreements. This revised approach is favored by Western energy firms, helping to accelerate project execution and generate higher financial returns. In addition to talks with Chevron and ExxonMobil, Iraq has activated contracts with Halliburton (HAL) for the Nahr Bin Umar and Sindbad fields, and HKN Energy for the Hamrin field, while maintaining an agreement with ConocoPhillips (COP) for the Akkas gas field where SLB (SLB) is operating.
Investors and energy market participants will monitor whether final binding contracts emerge from these preliminary talks and agreements. Key areas to watch include the formal transfer of operations at West Qurna 2, progress on ExxonMobil's seawater injection infrastructure, and how effectively the new profit-sharing terms attract long-term foreign capital into Iraq's energy sector.
Key points
- Iraq is negotiating with Chevron regarding the West Qurna 2 oilfield and four blocks in the Nasiriyah field.
- Talks with ExxonMobil cover the Majnoon oilfield, export infrastructure, and a 2.5 million bpd seawater supply project.
- Iraq is transitioning its contract framework toward profit-sharing models to encourage Western energy investment.
- Contracts have been activated with Halliburton for Nahr Bin Umar and Sindbad fields, and HKN Energy for the Hamrin field.
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How we writeDisclaimerQuestions and answers
Why is Chevron in talks with Iraq over the West Qurna 2 oilfield?
Chevron is discussing the West Qurna 2 oilfield following the departure of Russia's Lukoil due to international sanctions. Chevron is also in talks to develop four blocks in Iraq's Nasiriyah field.
What project is ExxonMobil discussing with the Iraqi Oil Ministry?
ExxonMobil is negotiating under a memorandum of understanding covering the Majnoon oilfield, export infrastructure, and a seawater supply project designed to deliver 2.5 million barrels per day for reservoir pressure.
How is Iraq changing its energy contract framework for foreign companies?
Iraq is shifting from its 2010 service-contract model toward profit-sharing mechanisms instead of production-sharing agreements, an approach preferred by Western energy firms to speed up project delivery.