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Chevron set to sign nonbinding Iraq MOUs for West Qurna 2, Nassiriya
The agreements are expected to advance talks on commercial terms for potential major upstream development, alongside work on export pipeline options to avoid the Strait of Hormuz.
Chevron is preparing to sign two memoranda of understanding with Iraq on Friday, a step that would move the U.S. supermajor closer to developing the West Qurna 2 oilfield and the Nassiriya project, according to OilPrice.
The outlet said the MOUs are not binding, but they are designed to push negotiations forward, including the commercial terms needed for a final deal. West Qurna 2 is described as a major target, with current production of about 460,000 barrels per day after Iraq nationalized the asset earlier this year following U.S. sanctions on Russia's Lukoil.
OilPrice added that Chevron entered exclusive talks for West Qurna 2 in February, and that Friday's agreements advance those discussions. The outlet also said Nassiriya is smaller today but offers exploration upside, and that Chevron and Iraq previously signed an agreement in principle covering Nassiriya plus four surrounding exploration blocks.
Separately, OilPrice reported that Chevron is working with Iraq on technical studies for new export pipelines aimed at moving crude to the Mediterranean without passing through the Strait of Hormuz. The company is also part of a consortium evaluating export routes that could connect Iraq's producing fields with Syria or other regional export corridors, as Iraq exports the overwhelming majority of its crude.
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