ERBIL, Kurdistan Region – Iraq on Monday signed preliminary agreements paving the way for US energy giant Chevron Corporation to take over management of the massive West Qurna 2 oil field in southern Iraq, marking a major shift in the country’s energy sector.
Prime Minister Mohammed Shia' al-Sudani presided over the signing ceremony in Baghdad, where Basra Oil Company and Chevron concluded a principles-of-agreement document concerning the transfer of the field’s management.
According to a statement from Sudani’s office, the deal follows a prior settlement between Basra Oil Company and Russian oil major Lukoil, which had been operating West Qurna 2. The settlement provides for the temporary transfer of the contract to Basra Oil Company and the resolution of outstanding financial dues between the two parties. The arrangement will take effect once approved by Iraq’s Council of Ministers.
A separate framework agreement was also signed between Basra Oil Company, Lukoil, and Chevron, granting the US firm exclusive rights to negotiate for one year.