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Iraq has signed two preliminary agreements covering the transfer of management of the West Qurna 2 oil field in southern Iraq and the development of several key fields, Prime Minister Mohammed Shia’ Al-Sudani’s office announced on Monday.
The first agreement was signed between Basra Oil Company and U.S.-based Chevron Corporation for the transfer of management of the West Qurna 2 oil field in southern Iraq.
The second agreement was signed by Chevron with Dhi Qar Oil Company and North Oil Company and covers development of the Nasiriyah oil field, four exploratory blocks in Dhi Qar Governorate, and the Balad field in Salah Al-Din Governorate.
A separate framework agreement involving Basra Oil Company, Russia’s Lukoil and Chevron was signed, which provides for the temporary transfer of the Lukoil’s operations contract to Basra Oil Company, which would later assign it to Chevron once negotiations are completed and a new contract is agreed.
Basra Oil Company and Lukoil had previously signed an agreement providing for the temporary transfer of Lukoil's contract and the settlement of all outstanding financial entitlements between the two parties. This settlement will enter into force once approved by Iraq’s Council of Ministers.
The framework arrangement also grants Chevron exclusive negotiation rights for one year under agreed criteria.
Basra Oil Company is operating West Qurna 2 since Lukoil decided to exit the contract due to mounting pressure of US sanctions on Russian entities.
Lukoil was awarded a contract for the development of West Qurna-2 field in December 2009, with commercial production starting in March 2014. The Russian oil and gas giant held a 75 percent stake in the field with the remaining 25 percent held by North Oil Company. Basra Oil Company (formerly called South Oil Company) handled the distribution of the project's oil.
The giant field pumps nearly 10 percent of Iraq’s crude output and has estimated proven crude deposits of around 14 billion barrels.
Al-Sudani said the agreements form part of broader efforts to reform Iraq’s oil sector and are expected to support economic conditions and livelihoods in Dhi Qar and Salah Al-Din provinces.
The signing ceremony was attended by U.S. officials, including US ambassador to Turkiye and special envoy for Syria and Iraq Tom Barrack and US Mission to Iraq Chargé d’Affaires Joshua Harris.
In December 2025, Iraq’s oil ministry had issued an invitation to several major US companies operating in Iraq to submit bids for managing West Qurna 2.
(Writing by N Saeed; Editing by Anoop Menon)
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