Iraq, Chevron sign initial agreement on Nassiriya oilfields

Iraq has reached a preliminary deal with US energy giant Chevron to develop the Nassiriya project, which includes four exploration blocks and a number of producing oilfields, Prime Minister Mohammed Shia al-Sudani has announced.

The deal is part of Baghdad’s broader strategy to attract international oil companies back into the country. Over the past two years, improved contractual terms have drawn major investments, including more than $50 billion in agreements with France’s TotalEnergies and the UK’s BP.

Chevron, which began negotiations with Iraq’s National Oil Company in 2021, said it is well-positioned to contribute technology and expertise to boost Iraq’s energy sector.

The Nassiriya development plan targets a capacity of 600,000 barrels of crude oil per day (bpd) within seven years through large-scale oil, gas, and water injection projects in Dhi Qar province.

Al-Sudani emphasised that the government has adopted a new framework for engaging with leading international energy firms, particularly US investors.

Attribution: Reuters
Subediting: M. S. Salama