{"id":16718,"date":"2026-01-28T06:34:40","date_gmt":"2026-01-28T06:34:40","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=16718"},"modified":"2026-01-28T06:34:40","modified_gmt":"2026-01-28T06:34:40","slug":"chevron-pushes-iraq-for-better-terms-before-taking-over-lukoils-west-qurna-2-oilfield-sources-say","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/16718\/","title":{"rendered":"Chevron Pushes Iraq for Better Terms Before Taking Over Lukoil\u2019s West Qurna 2 Oilfield, Sources Say"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0U.S. energy major Chevron is pressing Iraq for higher returns on the giant West Qurna 2 oilfield as a condition for stepping in to buy and operate the asset from Russia\u2019s Lukoil, three sources with knowledge of the discussions said.<\/p>\n

The Iraqi government nationalized operations at the field earlier this month after the United States imposed sanctions on Lukoil as part of efforts to pressure Russia over its war in Ukraine. Those sanctions severely hampered Lukoil\u2019s ability to manage its international assets, including West Qurna 2\u2014one of the world\u2019s largest oilfields, contributing roughly 0.5% of global supply and nearly 10% of Iraq\u2019s total output.<\/p>\n

Shortly after the nationalization, Iraq\u2019s oil minister confirmed that negotiations with Chevron over the field were underway. Lukoil now has until February 28 to sell off its sanctioned assets.<\/p>\n

Sources say Chevron and the Iraqi oil ministry are actively discussing improvements to the contractual terms. Any changes to the deal structure would require approval from Iraq\u2019s cabinet, according to two of the sources.<\/p>\n

A Chevron spokesperson declined to comment on commercial matters but stated: \u201cChevron has a diverse exploration and production portfolio globally and continues to assess potential opportunities. In all its activities, Chevron operates under a code of business ethics and complies with laws and regulations applicable to our business.\u201d<\/p>\n

Iraq\u2019s oil ministry confirmed to Reuters that \u201cnegotiations are still ongoing, with many details remaining under discussion.\u201d Lukoil did not respond to a request for comment.<\/p>\n

A successful deal would represent a significant expansion for Chevron in Iraq, building on its recent agreements to develop other fields in the country following its $53 billion acquisition of Hess in 2025.<\/p>\n

Iraq, the world\u2019s seventh-largest oil producer, has revamped its contract terms in recent years\u2014shifting from traditional service contracts to profit-sharing models\u2014to lure back major international oil companies and reverse years of underwhelming investment. Deals with firms like TotalEnergies and BP have included combined investment commitments exceeding $50 billion.<\/p>\n

West Qurna 2, one of the first major projects awarded after the 2003 U.S. invasion, operates under the older, less attractive service-contract framework and is widely regarded by industry sources as offering some of the lowest returns among Iraq\u2019s oil agreements.<\/p>\n

Iraq\u2019s oil production has climbed to over 4 million barrels per day in 2025\u2014up from about 2.5 million bpd before the 2003 invasion\u2014though the country has consistently fallen short of its long-term targets of 9\u201312 million bpd capacity.<\/p>\n

For now, the state-run Basra Oil Company has assumed temporary operatorship of West Qurna 2 for a 12-month period while the ownership transition is resolved, according to two officials from the company.<\/p>\n

Updated on