Chevron to Sign Agreement to Develop Iraqi Oil Fields — Bloomberg

Chevron plans to sign preliminary agreements with Iraq on Friday, July 17, regarding investments in the West Qurna-2 and Nasiriyah fields, an unnamed senior company executive told Bloomberg. In addition, according to this source, the American oil giant is among the companies exploring the possibility of building a pipeline to export Iraqi oil bypassing the Strait of Hormuz.

The agreements with Iraq will most likely be nonbinding, but they will confirm Chevron's intention to eventually enter into commercial contracts for both projects, according to Bloomberg. The company has been conducting negotiations for more than a year.

West Kurna-2 is Iraq’s second-largest oil field, producing approximately 460,000 barrels per day. The field was previously developed by Lukoil, which fell under U.S. sanctions in 2025, after which the asset was fully transferred to Iraqi state entities. Nasiriyah is a smaller field but has significant potential for geological exploration. A Bloomberg source noted that both fields offer opportunities for a substantial increase in production.

Chevron has also joined a consortium of U.S. and international companies that is exploring the possibility of building a pipeline that would allow Iraq to ship oil bypassing the Strait of Hormuz, a source told the agency. Earlier this week, Bloomberg reported that the company is in talks to restore the long-dormant Kirkuk–Baniyas oil pipeline, which is about 800 km long and runs through Syria to the Mediterranean coast. On Thursday, Iraqi Prime Minister Ali al-Zaidi met with Chevron executives in Houston as part of his visit to the U.S., and prior to that, he met with President Donald Trump. Trump stated that new “large-scale” partnerships in the oil industry would be announced in the coming days.

Chevron shares rose 1.8% during trading on July 16. Meanwhile, oil prices remained virtually unchanged: Brent futures edged down by 0.1% to trade at $84.9 per barrel, while U.S. WTI fell 0.3% to $79.4 per barrel.

Since the beginning of the year, the company’s market capitalization has risen by 21%. The most common recommendation from analysts covering its stock is to buy. It has 20 bullish ratings and only one bearish one, according to MarketWatch . The average price target is about $214, which implies upside potential of nearly 18% relative to the July 15 closing price.

Before the war, Iraq ranked second in OPEC in terms of production volume. After tankers were blocked in the Strait of Hormuz, the country was forced to cut production by more than 60%. The latest rounds of U.S. and Iranian strikes, which began last week, have underscored the need to seek long-term alternative routes bypassing the strait, where shipping has once again come to a virtual standstill in recent days.

This article was AI-translated and verified by a human editor