Iraq in talks with Chevron and ExxonMobil on major oilfield and infrastructure projects

Iraq is negotiating with US energy companies Chevron and ExxonMobil over the development of major oilfields and associated infrastructure, Oil Minister Bassem Mohammed Khudair Al-Abadi told the Iraqi News Agency (INA), Reuters reported on Tuesday.

Chevron is in discussions with the Oil Ministry over the West Qurna 2 oilfield following the withdrawal of Russia’s Lukoil due to sanctions, as well as the development of four blocks in the Nasiriyah field, the minister said.

The ministry is also holding discussions with ExxonMobil under a memorandum of understanding covering the Majnoon oilfield, export infrastructure and a seawater supply project designed to provide 2.5 million barrels per day to support reservoir pressure.

Al-Abadi said Iraq’s oil agreements continued to follow a service-contract model, with the contractual framework evolving from the arrangements used during the initial licensing rounds in 2010 towards profit-sharing mechanisms rather than production-sharing agreements. He said US and European companies favoured the revised approach, which the ministry considered effective in accelerating project implementation and generating financial returns for Iraq.

Separately, the ministry has activated a contract with US oilfield services company Halliburton to develop the Nahr Bin Umar and Sindbad oilfields. It also has a memorandum of understanding with ConocoPhillips for the development of the Akkas gas field, where SLB is working on the first phase, and has activated a contract with HKN Energy for the development of the Hamrin oilfield.