(Michael M. Santiago/Getty Images/TNS)
February 23, 2026 1:26 PM, EST
Chevron Corp. emerged as the front-runner to take control of Iraq’s second-largest oil complex from Russian producer Lukoil PJSC after signing a deal to engage in exclusive talks over the giant field.
The U.S. oil giant signed preliminary agreements to negotiate terms and exchange confidential data with state-owned Basra Oil Co. over the West Qurna 2 field, Chevron said in a statement. The arrangement is dependent upon approvals from the U.S. Treasury and the Iraqi government.
Chevron will have exclusive negotiation rights for 12 months, Iraq’s cabinet said in a separate statement.
“Competitive economic terms that incentivize investment which balances the needs of Chevron shareholders and the people of Iraq will be essential to the upcoming negotiations,” the company said.
The fate of Lukoil’s 75% stake in West Qurna 2 has been in focus since late last year when the Russian producer was sanctioned by the U.S., effectively forcing it to sell its vast array of international assets. The 480,000 barrels-a-day Iraqi field had also drawn interest from Exxon Mobil Corp. and others.
Lukoil agreed to sell most of its international portfolio to private equity firm Carlyle Group in January, though that deal was non-binding and non-exclusive.
The Trump administration made clear its preference that U.S. entities take over Lukoil’s global assets. Iraqi officials appeared to agree in the case of West Qurna 2. They are said to have grown tired of the slow pace of Russian and Chinese companies and believe the presence of the U.S. majors could help insulate the country from any future conflict involving Iran, Israel and the U.S., people familiar with their thinking said earlier this month.
Iraq last week approved a settlement process that would’ve had Lukoil transfer operations of the oil field to state-run Basra Oil.
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The move for West Qurna 2 is part of Chevron’s increasing focus on the Middle East in recent months. The company last signed an agreement for the Nasiriyah project in southern Iraq, months before Exxon had a similar pact to study the giant Majnoon field.
Chevron has made a concerted effort to bulk up reserves in an effort to grow production well into the next decade and beyond. It acquired Hess Corp. for about $48 billion last year, increased its exploration budget by 50% and is in talks with Kazakhstan to extend its license to operate the Tengiz field that expires in the early 2030s.
Written by Mitchell Ferman, Salma El Wardany and Khalid Al-Ansary
