Iraq, Chevron signs deals to develop oil fields

BAGHDAD

This handout picture made available by the Iraqi prime minister's office shows Iraq's Prime Minister Mohammed Shia al-Sudani (C), Oil Minister Hayan Abdul Ghani al-Sawad (R), and US Special Envoy to Iraq Tom Barrack (L) attending the signing of agreements between Chevron Corporation and the Basra, Dhi Qar, and North Oil Companies at the government palace in Baghdad on Feb. 23, 2026.

Iraq and the U.S. energy giant Chevron signed deals on Feb. 23 to manage and develop several oil fields, including one previously operated by Russia's Lukoil.

Prime Minister Mohammed Shia al-Sudani's media office said that "two preliminary memoranda of principles" were signed with Chevron, the first of which was "concerning the transfer of management of the West Qurna 2 field," one of the world's largest oil fields.

The second agreement concerns the development of the Nasiriyah field and four exploratory blocks in Dhi Qar province in the country's south, as well as the Balad field in the northern province of Salah al-Din.

Iraq had previously invited U.S. companies to bid on the West Qurna 2 field, which was operated by the Russian company Lukoil that is now sanctioned by Washington over the Ukraine war.

The state-owned Basra Oil Company, Lukoil and Chevron Corporation also signed a framework agreement that temporarily transfers the contract to Basra Oil Company, which will assign it to Chevron once negotiations conclude and the terms of a new contract are agreed, the statement said.

The framework agreement "grants Chevron exclusive negotiation rights for a period of one year.”

Iraqi authorities and Lukoil had agreed on a settlement that includes a temporary transfer of the contract to the Basra Oil Company, as well as "the settlement of all outstanding financial entitlements," the prime minister's office said.

Tom Barrack, the U.S. Special Envoy to Syria and ambassador to Türkiye who has recently visited Iraq multiple times, attended the signing ceremony.

The prime minister's office introduced him as the U.S. Special Envoy to Iraq, a title not confirmed by Washington.

Authorities in oil-rich Iraq, which has recently regained a semblance of stability after decades of conflict, hope to attract investment, notably from U.S. companies, across various sectors of the economy.