The Iraqi Ministry of Oil and Chevron Corporation have signed an agreement in principle to develop major oil and gas projects in southern and central Iraq, marking Chevron’s long-anticipated re-entry into the country’s energy sector after several years of limited presence.

The agreement encompasses:

• Four upstream exploration blocks within the Nassiriya Project in Dhi Qār province, southern Iraq
• The development of the Balad oilfield north of Baghdad
• Potential expansion into additional producing fields and projects

Key Strategic Impacts

• Production Expansion Goal: Iraq aims to boost crude production with the Nassiriya Project expected to reach an initial capacity of approximately 600,000 barrels per day within seven years of commencement.
• Reserves Potential: The Nassiriya field is believed to hold up to 4.4 billion barrels of crude, representing a major asset for Iraq’s upstream capacity expansion.
• Market Optimism: Following the announcement, Chevron’s stock rose modestly by 0.8%, reflecting investor confidence in the firm’s strategic comeback to Iraq after more than a decade

Prime Minister Mohammed Shia al-Sudani welcomed Chevron’s return, reaffirming Iraq’s commitment to a “new approach” toward partnerships with major international—and especially U.S.—oil companies. He emphasized that the government sees these collaborations as instrumental in advancing production, technology transfer, environmental standards, and community development.

Frank Mount, Vice President of Chevron, expressed confidence in the venture, noting that “Iraq is a country full of opportunities and high potential,” and praised the firm’s technological expertise, which aligns with Iraq’s long-term energy development goals.

This agreement is part of a broader wave of renewed U.S. energy engagements in Iraq. Earlier in the year, Iraq signed gas development deals with SLB and held discussions with Baker Hughes on technology projects. The move signals Iraq’s strategic pivot to reinvigorate its upstream sector through deeper collaboration with Western energy and tech firms.