Iraq seals oil exploration agreement with US company Chevron
Iraq has signed a deal with US oil producer Chevron for the purpose of oil exploration, The Arab Weekly via Reuters reported on August 20th.
The deal is for the Nasiriyah project, with the Nasiriya oilfield being located south of the capital Baghdad. The project consists of four exploration blocks, but the deal is also for the development of other producing oil fields, Iraq’s prime minister, Mohammed Shiaa al-Sudani, said on August 19th.
This follows the trend of Iraq signing agreements with oil majors in the past two years, notably France’s TotalEnergies and the UK’s BP – reestablishing ties between the Middle Eastern nation and the West.
In addition, on July 17th, the Iraqi government struck a long-awaited deal with the semi-autonomous Kurdistan region on crude oil, which will restore their relations on public sector wages and exports more fairly and efficiently.
Frank Mount, Chevron’s vice president of corporate business development, said: “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.”
During 2021, Iraq authorised National Oil Company to begin talks with Chevron over the development of oil fields in Nassiriyah, with the initial plan to complete a cluster of projects in the oil, gas, and water injection sectors to enhance crude oil capacity.
Al-Sudani has claimed that the government have adopted a fresh approach in dealing with major international oil companies, particularly American companies.
Recently, the Iraqi government led by al-Sudani has made strides to restore economic stability and reignite growth, with Iraq acquiring $930 million from the World Bank to upgrade infrastructure and create more jobs.
Infrastructural progress alongside the rehabilitation of oil ties, and the Kurdistan region resuming oil exports means that despite the potentially detrimental impact of Trump’s tariffs on Iraq, there are signs that Iraq’s economy might outstrip the region’s instability and thrive.
The Arab Weekly via Reuters, Maghrebi.org
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