What are the two main projects covered in Chevron's new memoranda of understanding with Iraq, and what is their strategic significance?

The two main projects covered in Chevron's new memoranda of understanding with Iraq are the West Qurna 2 oil field and the Nasiriyah project. The West Qurna 2 field—described as one of the world's largest, with a current production capacity of approximately 460,000 barrels per day—was previously operated by Russia's Lukoil but was nationalized by Iraq earlier this year following U.S. sanctions; Chevron secured exclusive negotiation rights in February 2024, and this MoU advances discussions toward final commercial terms for assuming operational control. The Nasiriyah project encompasses multiple producing fields and four exploration blocks, building on a prior framework agreement signed in August 2023, thereby expanding Chevron’s upstream footprint in Iraq. Together, these initiatives represent a major step in Chevron’s re-entry into Iraq’s oil sector and signal Iraq’s broader effort to attract Western investment following the exit of Russian operators.

Why is pipeline route assessment a key component of Chevron’s collaboration with Iraq, and what specific infrastructure option is under evaluation?

Pipeline route assessment is a key component because Iraq’s oil exports remain overwhelmingly dependent on the Strait of Hormuz—a maritime chokepoint where shipping risks have been persistently elevated, threatening export reliability and insurance costs. To mitigate this vulnerability, Chevron—alongside Qatar Energy and other partners—has formed a consortium that signed an agreement with Iraq’s state-owned Basrah Oil Company on July 4, 2024, to evaluate alternative pipeline routes. A leading proposal under assessment is the rehabilitation of a transnational pipeline running from Kirkuk in northern Iraq to the Syrian port of Baniyas, which would provide a land-based export corridor bypassing the Strait of Hormuz entirely.

Chevron Signs Memorandum with Iraq to Advance Oil Field Development and Pipeline Construction

Jul 21, 2026

Chevron signed two memoranda with Iraq to develop the West Qurna 2 and Nasiriyah oil projects, taking over operations previously held by Russian firms. Additionally, the company is evaluating new pipeline routes to mitigate shipping risks in the Strait of Hormuz.

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