Chevron, the American oil giant, has signed a Principle Agreement with the Iraqi Oil Ministry to develop the Nasiriyah Project, including four exploration blocks, the Balad oil field, as well as other producing fields and exploration blocks, according to a press statement by the office of the Iraqi Prime Minister, Mohammed Al Sudani.
During his meeting with Chevron Vice President Frank Mount and the accompanying delegation, Al Sudani commended Chevron’s role in bringing advanced oil technology to Iraq, supporting local communities, and implementing responsible environmental practices in its projects. He hailed its decision to resume its activities in Iraq, emphasising his country’s new approach to engaging with major international oil companies, particularly the American firms.
Iraq in the past two years has signed agreements with other oil majors, reversing a long period during which they retreated from the country. Improved contract terms have lured both France’s TotalEnergies and UK oil major BP to sign new deals, with a combined investment of over $50 billion, according to Reuters.
Mount, expressed Chevron’s eagerness to operate in Iraq, describing it as a country abundant in opportunities and blessed with vast natural and human resources. He stressed the company’s commitment to building a long-term partnership with Iraq.
In 2021, Iraq authorised the National Oil Company (NOC) to negotiate with Chevron over the development of oil fields in Nassiriya, in the Iraqi southern province of Dhi Qar, Reuters noted.
The ministry at the time said its plan in the province included the completion of a group of giant projects in the oil and gas and water injection sectors, with a targeted initial capacity of 600,000 barrels of crude oil per day within seven years of starting work.