Chevron is talking to the governments of Iraq and Libya about exploration opportunities in the two Opec member nations, chief executive Mike Wirth said on Friday.
During a conference call with analysts after reporting fourth-quarter earnings, Mr Wirth said Chevron is intentionally a “little bit underweight” in the Middle East compared to other parts of the world.
“The types of contracts and the terms [that] have been on offer in the Middle East, broadly speaking, for the last decade or more, have not been very competitive versus some of our alternatives,” he said.
Mr Wirth said discussions range from existing producing fields, exploration opportunities and improvements in fiscal terms.
Chevron recently signed a memorandum of understanding with Libya's National Oil Corporation to explore development opportunities in the country. Chevron left Libya more than a decade ago.
Mr Wirth said the company has seen a “notable uptick in inbound inquiries” to engage in both of the Opec members since President Donald Trump's visit to the region last year.
Iraq and Libya are two of the largest holders of proven oil reserves globally, holding roughly 145 billion and 48 billion barrels respectively, according to data from the US Energy Information Administration.
“The resource potential in some of these countries is undeniable,” Mr Wirth said.
He added that the Houston-based company needs to see compelling opportunities for value in Iraq and Libya if Chevron were to invest.
Chevron in August also signed an agreement in principle with the Iraq government that includes four exploration blocks, the development of the Balad oilfield and possibly other fields and projects.
Chevron reported fourth-quarter earnings per share of $1.52, beating the LSEG consensus estimate of $1.45 per share.
