Chevron demands improved fiscal terms on West Qurna 2 takeover from Lukoil
Chevron is negotiating with Iraq to secure higher fiscal returns as a condition for purchasing the West Qurna 2 oil field project from Russia’s Lukoil, according to three sources. This conditional demand may delay closing and underscores Chevron’s focus on maximizing post-acquisition profitability for one of Iraq’s largest producing assets.
1. Chevron Appoints Thomas W. Horton to Board
Chevron has expanded its board of directors with the appointment of Thomas W. Horton, 64, as an independent director. Horton, currently a partner at Global Infrastructure Partners and senior advisor at Warburg Pincus, brings extensive leadership experience from his tenure as chairman and CEO of American Airlines Group. He will also serve on Chevron’s Audit Committee, strengthening the company’s financial oversight with his background in complex corporate restructuring and governance.
2. Chevron Seeks Improved Terms for West Qurna 2 Acquisition
Sources indicate Chevron is negotiating with Iraq’s oil ministry to secure more favorable fiscal terms before finalizing the takeover of the West Qurna 2 field from Lukoil. West Qurna 2, one of Iraq’s largest producing assets with daily output exceeding 500,000 barrels, represents a strategic growth opportunity. Chevron is reportedly seeking higher cost recovery rates and steeper production-sharing margins to ensure project returns exceed its global average upstream return on capital employed of roughly 10%.
3. Memorandum of Understanding with Libya’s NOC
Chevron signed a memorandum of understanding with the National Oil Corporation of Libya to recommence oil and gas exploration after a hiatus of over ten years. The agreement outlines joint evaluation of onshore and offshore blocks in the Sirte Basin and the Ghadames Basin, targeting seismic surveys and preliminary drilling in the second half of 2026. This collaboration marks Chevron’s strategic re-entry into North Africa, where it aims to add up to 200,000 barrels per day of production capacity over the next five years.
4. Institutional Investors Increase Chevron Holdings
Belpointe Asset Management boosted its stake in Chevron by 28.9% during the third quarter, acquiring an additional 7,102 shares to bring its total to 31,653 shares. The firm’s Chevron holdings were valued at approximately $4.9 million at the quarter end. Meanwhile, Norges Bank initiated a position worth about $2.7 billion in the second quarter, and Berkshire Hathaway raised its holdings by 2.9%, adding over 3.4 million shares. Collectively, institutional investors now own more than 72% of Chevron’s outstanding shares, underscoring continued confidence in the company’s dividend yield and future cash flow generation.