Iraq signed an agreement in principle with U.S. oil producer Chevron for the Nassiriya project that consists of four exploration blocks in addition to the development of other producing oil fields, Iraq's prime minister said on Tuesday.
The agreement highlights the progress made in engaging global 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.
"We are confident that Chevron, with its proven track record and expertise in successfully developing oil and gas projects, has the resources, experience, and technology to support Iraq to further develop new energy resources," said Frank Mount, Chevron's vice president of corporate business development, in a statement.
In 2021, Iraq authorised National Oil Company (NOC) to negotiate with Chevron over the development of oilfields in Nassiriya, in the Iraqi southern province of Dhi Qar. 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.
Prime Minister Mohammed Shia al-Sudani said the government adopted a new approach in dealing with major international oil companies and their investments in Iraq, especially U.S. companies, his office said.