Iraq has entered into an agreement with Chevron for oil exploration and development projects in the country, including the Nassiriya project comprising four exploration blocks and other producing fields, according to a Reuters report.

The agreement, as announced by the country’s prime minister, highlights the progress made in engaging global oil majors after a prolonged period of retreat from the country.

Over the past two years, Iraq has successfully attracted industry giants such as TotalEnergies and bp, resulting in a total investment exceeding $50bn.

These agreements have been facilitated by improved contract terms that have made Iraq a more appealing destination for oil companies.

Chevron vice-president of corporate business development Frank Mount was quoted as saying: “We are confident that Chevron, with its proven track record and expertise in successfully developing oil and gas projects, has the resources, experience and technology to support Iraq to further develop new energy resources.”

In 2021, Iraq's National Oil Company was authorised to negotiate with Chevron regarding the Nassiriya oil fields development in Dhi Qar province.

The plan for the Dhi Qar province included significant oil, gas and water injection projects, targeting an initial capacity of 600,000 barrels per day (bpd) of crude oil within seven years of commencement.

Prime Minister Mohammed Shia al-Sudani's office highlighted the government's new approach to dealing with major international oil companies, particularly from the US, to foster investment in Iraq.

Meanwhile, Chinese independent oil companies are ramping up operations in Iraq, with ambitions to double their production to 500,000bpd by 2030.

These companies are capitalising on more favourable contract terms and the opportunity to implement projects more cost-effectively and swiftly than their larger state-run counterparts.