Iraqi Oil Minister Basim Khudair and Chevron’s head of corporate business development, Jake Spiering. Photo: Iraqi Oil Ministry
Baghdad (IraqiNews.com) – Iraqi Oil Minister Basim Khudair and representatives from Chevron discussed on Tuesday potential cooperation to support the ministry’s plans to increase oil production and develop infrastructure.
The meeting is part of an official visit to Washington by an Iraqi team led by Prime Minister Ali al-Zaidi to meet with American officials to strengthen bilateral relations.
According to a statement released by the Oil Ministry, Khudair discussed with Chevron’s head of corporate business development, Jake Spiering, prospects for collaboration between the Oil Ministry and the US-based firm, as well as strategies to expand partnerships in developing Iraq’s oil and gas sectors.
Khudair underscored the ministry’s commitment to strengthening collaboration with renowned foreign firms to accomplish mutual objectives and carry out key projects for Iraq’s oil and gas industry.
Chevron representatives emphasized their interest in deepening cooperation with Iraq and exploring potential investment prospects in the oil and gas industries, indicating the company’s intent to broaden its presence in the Iraqi market.
In early July, the Iraqi cabinet authorized the state-owned Basra Oil Company (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.