Shafaq News- Basra
Iraq has made progress in negotiations with US energy company Chevron to develop the West Qurna 2 oil field, with no major obstacles remaining to a final agreement, the Director General of Basra Oil Company stated on Wednesday.
Bassem Abdul Karim told Shafaq News that the state-owned company will manage the West Qurna 2 field on an interim basis for six months following the withdrawal of Russia's Lukoil, while negotiations with Chevron continue.
The two sides have signed three agreements covering confidentiality, technical matters, and the transfer of field data, with a fourth agreement expected to be signed next week, Abdul Karim said, adding that procedures related to a $200 million advance payment are still underway. The Ministry of Oil is also preparing a financial guarantee to address any potential liabilities, allowing negotiations to proceed toward a final contract that would give Chevron responsibility for developing and operating the field.
Abdul Karim said France's TotalEnergies is continuing work on the Artawi oil field development project, aiming to increase production to 210,000 barrels per day within three years after raising output to 120,000 barrels per day in the coming months. The company is also advancing associated gas capture and solar power projects in Basra.
The electricity project has entered the production phase with an initial generating capacity of 250 megawatts, which is planned to increase gradually to 1,000 megawatts to support Iraq's national power grid, Abdul Karim clarified.
The update follows Prime Minister Ali Al-Zaidi’s visit to Washington, where he announced discussions with Chevron on investment opportunities in Iraq's oil sector as part of the government's efforts to attract major international energy companies and expand investment in developing the country's oil fields.
Lukoil's withdrawal from West Qurna 2 came after US sanctions on Russia complicated the company's ability to manage its international operations. West Qurna 2 is one of the world's largest oil fields, accounting for about 0.5% of global oil supply and roughly 10% of Iraq's crude oil production.