The Basra Oil Company (BOC) has signed a non-disclosure agreement with US energy giant Chevron to “regulate data exchange for evaluating” the vast West Qurna 2 oilfield, Iraq’s Ministry of Oil said on Wednesday.
Chevron entered exclusive talks with Baghdad over the oilfield in the southern province of Basra in February, after Russian company Lukoil withdrew from the project under US Treasury sanctions late last year and then reached an “amicable settlement” to transfer operations to BOC.
The NDA will feature the sharing of technical and financial data as Chevron assesses the oilfield, which has been under state management since Lukoil's exit.
The Iraqi Oil Ministry said the move is intended to “pave the way for future partnership talks”.
West Qurna 2 is one of Iraq’s largest oil production sites, with estimated recoverable reserves of about 14 billion barrels. It was pumping about 460,000 barrels per day, about 9 per cent of national output, before the government cut production due to the closure of the Strait of Hormuz during the Iran war.
The deal is part of a broader opening to major US oil companies. In February, Iraq and Chevron signed preliminary agreements to develop the Nasiriyah field and four exploration blocks in the southern Dhi Qar province and the Balad field in Salaheddin province, north of Baghdad.
The momentum aligns with the new Iraqi Prime Minister's economic strategy. Mr Al Zaidi, who took office in May, told The National that American companies will be given first refusal on energy and investment deals ahead of his planned visit to Washington this month. He has linked the shift to his nation’s postwar revenue needs and to attracting capital from firms that previously shunned Iraq due to instability.
“In the future, US companies will receive top priority if they want to do business in Iraq,” Mr Al Zaidi said. Iraq's ministries of oil, electricity and communications have been directed to prioritise reputable US companies, focusing heavily on energy, telecoms, technology and development.
Mr Al Zaidi outlined plans for a joint energy and development fund with the US, financed by the equivalent of 500,000 barrels per day, with funds to be spread across a range of investments, including electricity and infrastructure projects.
