Chevron to sign MOUs with Iraq for West Qurna 2 and Nassiriya oilfields

Iraq's government is seeking to secure U.S. partnerships during this week's visit to the U.S. to help boost its oil output. In February, Chevron moved into exclusive talks with Iraq for West Qurna 2, one of the world's largest oilfields that currently produces about 460,000 barrels per day.

The preliminary agreement on Friday will progress commercial terms and help lead to a final agreement for Chevron to take over the oilfield, the senior executive said.

Chevron and Iraq signed an agreement in principle last August to develop the Nassiriya oilfield project that consists of four exploration blocks in addition to the development of other producing oil fields.

Chevron will sign memorandums of understanding on Friday with the Iraqi government to advance the U.S. oil major's interests in the West Qurna 2 and Nassiriya oilfields, according to a senior Chevron executive.

The company is also continuing talks with Iraq to produce technical studies and evaluate potential pipeline routes to transport crude out of the country and bypass the Strait of Hormuz, the executive said.

Iraqi Prime Minister Ali al-Zaidi, who took office in May, visited Chevron's Houston headquarters on Thursday as part of a five-day trip to the U.S., which included a meeting with President Donald Trump on Tuesday.