Chevron plans to sign deal with Iraq on July 17

Chevron Corp is expected to sign a deal with Iraq on July 17 that will advance its talks about investing in large oil fields and a pipeline to bypass the Strait of Hormuz.

A senior company official said on July 16 that the agreements were expected to be non-binding, but would reflect Chevron’s commitment to eventually sign commercial deals for the West Qurna-2 and Nasiriyah fields. Chevron is also part of a consortium of U.S. and international companies that is exploring the potential to build a pipeline that would help export oil to Iraq by bypassing the Strait of Hormuz, the executive said.

Earlier this week, Bloomberg News reported that the company is in talks with a consortium of investors to revive the long-defunct Kirkuk-Banias pipeline, a 500-mile-long conduit running from Syria to the Mediterranean coast.

More: US supports Iraq-Syria pipeline that would bypass Hormuz

Chevron has been in talks about investing in Iraq for more than a year as it looks to expand its footprint in the Middle East. Its efforts come at a time when President Donald Trump is pressuring American oil companies to increase production. The Iran war has underlined the need for new export routes that avoid the Persian Gulf, where most ship traffic has been blocked since the conflict began in February.

The executive said Chevron wants to ensure it has access to transport cargo to the Mediterranean Sea.

Mark Nelson (center left), Chevron vice president, and Ali al-Zaidi (center right), Prime Minister of Iraq, during a meeting at Chevron headquarters in Houston on July 16. (Mark Felix/Bloomberg)

West Kurna-2 produces about 460,000 barrels per day and is now 100% owned by state-owned entities after Russian producer Lukoil. Accepted By America in 2025. Nasiriyah is a small operation but is believed to have extensive exploration potential.

Chevron believes there is significant potential to expand production at both West Qurna-2 and Nasiriyah, a senior company official said. The executive said technical studies still have to be completed on both the fields and the pipeline, while commercial terms are still far from the finish line.

Iraqi Prime Minister Ali al-Zaidi met with Chevron executives in Houston on July 16 as part of a tour of the U.S. Earlier this week, he met with Trump at the White House. Trump said “massive” new oil partnerships would be announced in the coming days.

“We appreciate the opportunity to meet with Iraqi leaders and talk about how our expertise in building large oil and gas projects around the world can support Iraq as it develops its abundant energy resources,” Chevron upstream president Clay Neff said in a statement.

foreign investment

Iraq, OPEC’s second-largest producing member before the war, was forced to cut oil production by more than 60% when exporter ships were blocked from exiting the Strait of Hormuz, putting a strain on government finances in the country already poor compared to some of its neighbors such as Kuwait and Qatar. The country wants to attract foreign investment, especially from the US, to expand its oil production and reduce its dependence on the Persian Gulf choke point.

The latest attacks by both the US and Iran last week underlined the need for long-term options for the Strait of Hormuz, which was again closed to shipping in the past few days. biggest energy supply disruption in history earlier this year.

Trump endorsed al-Zaidi for prime minister in April, believing that his main rival – former premier Nouri al-Maliki – was too close to Iran. Al-Zaidi is a political novice, but the White House has expressed hope that he can crack down on Iran-backed militias in Iraq while further opening the country’s oil fields to American companies.