The US company Chevron is in talks with the Iraqi Oil Ministry to improve the terms of the contract to buy West Qurna-2, one of the world's largest oil fields, 75% of which is owned by Lukoil, three sources familiar with the matter told Reuters, RBC reported.
In early January, management of the West Qurna-2 field was transferred to the Iraqi state-owned Basra Oil Company. Company representatives told Reuters that it had taken over management of the field for 12 months, pending the resolution of the ownership issue.
According to the sources, Chevron is seeking to increase the profitability of the field. Two of the agency's sources added that any deal under the new terms would require approval from the Iraqi government. Industry sources told Reuters that West Qurna-2 generated one of the lowest profits of all Iraqi contracts.
The agency noted that this field accounts for almost 10% of Iraq's production and about 0.5% of world oil supplies. In addition, Reuters reported that Iraq has failed to achieve its promised production capacity of 9-12 million barrels per day since the end of the 2003-2011 war: the country's oil production has increased to more than 4 million barrels per day from about 2.5 million barrels before the US invasion.
Chevron told Reuters that it does not comment on commercial matters. “Chevron has a diverse portfolio of exploration and production assets around the world and continues to evaluate potential opportunities“, a company spokesman said. “Chevron is guided by of a code of conduct in all its activities and complies with the laws and regulations applicable to our business.“
The Iraqi Oil Ministry told Reuters that negotiations with Chevron were ongoing and “many details remain under discussion“.
West Qurna-2 is one of the world's largest fields in southern Iraq, with initial reserves of approximately 14 billion barrels. The development is being carried out under a contract signed by LUKOIL in January 2010. The Russian company holds a 75% stake in the project, while Iraq's North Oil Company holds the remaining 25%. Under the agreement, LUKOIL finances the entire project, with North Oil Company not bearing any costs, receiving only its share of royalties.
Following the imposition of sanctions by the United Kingdom and the United States on LUKOIL and its subsidiaries in October last year, the company decided to sell its foreign assets. The US Treasury Department has issued a license to carry out the relevant transactions, which has been extended several times, the last one until February 28.
In November 2025, Reuters reported that Chevron was considering buying LUKOIL's international assets. In January, the Financial Times learned that Chevron and private equity group Quantum Energy Partners were teaming up to bid for LUKOIL's international assets, the total value of which is estimated at $22 billion. The companies plan to separate the assets if the deal goes through, the newspaper reported.