U.S. Envoy Tom Barrack Joins Iraqi PM al-Sudani for Signing of Major Oil Agreements with Chevron

Peregraf — Prime Minister Mohammed Shia al-Sudani presided over the signing of two preliminary agreements between Iraq’s state-owned oil companies and the U.S.-based Chevron Corporation on Monday. The ceremony was attended by U.S. Special Envoy for Syria Tom Barrack and the U.S. Chargé d’Affaires in Iraq, Joshua Harris.

The first agreement, signed with the Basra Oil Company, covers the transfer of management of the West Qurna-2 oil field to Chevron. The second agreement, involving the Dhi Qar Oil Company and the North Oil Company, focuses on the development of the Nasiriyah oil field, four exploratory blocks in the Dhi Qar province, and the Balad field in the Salah al-Din province. This agreement also amends previous contracts to officially incorporate the Nasiriyah field.

Prime Minister al-Sudani emphasized the strategic importance of these agreements, noting that they are expected to bolster the economy and improve local livelihoods in the Dhi Qar and Salah al-Din provinces.

The ceremony also featured the signing of a framework agreement among the Basra Oil Company, the Russian energy firm Lukoil, and Chevron. This arrangement allows for the temporary transfer of Lukoil's operating contract to the Basra Oil Company, which will subsequently assign it to Chevron once negotiations are finalized and a new contract is agreed upon. Under this framework, Chevron has been granted exclusive negotiation rights for a one-year period. 

Prior to this, the Basra Oil Company and Lukoil reached a settlement to resolve all outstanding financial entitlements. This settlement will take effect upon approval by the Iraqi Council of Ministers.

These agreements highlight Iraq’s continued efforts to attract international investment, modernize its energy sector, and drive the country’s economic recovery.