Iraq signs oil exploration deal with US's Chevron

19 Aug 2025 23:15
19 Aug 2025 23:17

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Iraq signs oil exploration deal with US's Chevron

Photo: Iraqi Prime Minister Media Office / X

Iraqi Prime Minister Mohammed Shia Al Sudani announced on Tuesday that an agreement in principle had been reached between the Ministry of Oil and the U.S. energy company Chevron.

Mr Al Sudani's office said the agreement includes four exploration blocks, the development of the Balad oilfield and possibly other fields and projects, News.Az reports citing foreign media.

During a meeting with Chevron vice president Frank Mount in Iraq, Mr Al Sudani welcomed the company's return to work in the country, “affirming that the government has adopted a different approach in dealing with major oil companies and their investments in Iraq, particularly American ones”, his office said.

Mr Al Sudani also spoke of Chevron's efforts in transferring oil technology to Iraq, its community contributions and environmental policies it follows in its oil projects.

Mr Mount celebrated the "heads of agreement" with Iraq as an important milestone.

“Iraq is a major producer of crude oil and holds substantial oil and gas resources," he said in a statement.

"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.”

The agreement in principle follows one made by US company SLB – formerly known as Schlumberger – in July. The contract signed between Iraq's Ministry of Oil and SLB was aimed at boosting natural gas production at the Akkas gasfield. Iraq's Oil Minister Hayan Abdel Ghani said at the time that the deal aimed to raise production levels to 100 million standard cubic feet a day.

Mr Al Sudani also held talks with Baker Hughes chief executive Lorenzo Simonelli this year to discuss the US energy technology company's projects in Iraq.

Despite being the second-largest producer in Opec, Iraq still depends on Iran for about a third of its electricity needs. Baghdad has come under increasing pressure from Washington to be less reliant on Tehran.

News.Az