The West Qurna-2 oilfield in southern Iraq. Photo: Lukoil
Baghdad (IraqiNews.com) – The Iraqi Oil Ministry signed a deal with Chevron on Sunday to provide technical consultancy services to the Basra Oil Company (BOC).
The deal signed under the auspices of Iraqi Oil Minister Basim Khudair covers consultancies by Chevron during the negotiation period with BOC about the development of the West Qurna-2 oil field, according to a statement released by the Iraqi Oil Ministry.
In early July, the Iraqi cabinet authorized the state-owned BOC to sign a preliminary agreement and non-disclosure agreement with a consortium of US-based Capital TI and Chevron, as well as Qatar’s UCC, to construct strategic oil pipelines.
The consortium will carry out technical and financial feasibility studies to compare routes, including Basra-Haditha-Kirkuk-Ceyhan and Basra-Haditha-Baniyas, according to the Prime Minister’s Office (PMO).
The Iraqi Oil Ministry signed in February two agreements with Chevron to manage and develop major hydrocarbon resources in the country.
Under the first agreement, Chevron acquired Russia-based Lukoil’s share in Iraq’s West Qurna-2 oil field, one of the biggest oil resources in both the country and the world.
Chevron and Iraq’s Dhi Qar Oil Company and North Oil Company (NOC) have inked a second deal to develop the Nasiriyah oil field, four exploration blocks in the southern Iraqi province of Dhi Qar, and the Balad oil field in Salah al-Din province.
The goal of the negotiations between Chevron and the Iraqi Oil Ministry is to improve the conditions of the contract, specifically with regard to profit margins, revenue-sharing arrangements, capital spending caps, and increased operational flexibility.
Chevron reiterated its commitment to expanding long-term partnerships with the Iraqi government to effectively develop oilfields in the country.