Iraq’s West Qurna 2 oilfield poised for output surge with Chevron, minister says

Iraq could nearly double its output from the West Qurna 2 oilfield to 800,000 barrels per day (bpd) as Chevron (CVX.N) enters exclusive talks to take over operations from Russia’s Lukoil, Iraq’s oil minister said on Wednesday. Iraq has been seeking to increase oil and gas production, with oil majors vying to expand operations after scaling back during years of political instability. Oil Minister Hayan Abdel-Ghani told Kurdish TV channel Rudaw that output could rise to between 750,000 and 800,000 bpd after Chevron takes over operations at the field. The U.S. company has secured exclusive negotiations to take over the project. Iraq, the second-largest producer within the OPEC+ group comprising the Organization of the Petroleum Exporting Countries and allies including Russia, plans to raise oil production capacity to more than 6 million bpd by 2029. The deal would expand Chevron’s footprint by giving it control of one of the world’s largest oilfields, which accounts for nearly 10% of Iraq’s production and about 0.5% of global supply. The deal could also bolster relations between Baghdad and Washington, which threatened to curb Iraq’s access to oil revenue if Iranian-backed groups were included in the coming government.