Iraq and Chevron agree on West Qurna 2 terms, aim year-end signing

Iraq expects Chevron to finalize a deal to operate the West Qurna 2 oilfield by year-end, ahead of the exclusivity period's February expiration.

Iraq and Chevron have agreed on terms for developing the West Qurna 2 oilfield, aiming to finalize the contract by November's end. The field has 13 billion barrels of recoverable reserves. This deal aligns with Iraq's push to attract US energy investment, including Chevron's potential expansion in crude production and refining. Chevron's involvement follows Lukoil's withdrawal due to sanctions. Iraq's oil production has recovered to 3.4 million bpd despite regional conflicts and fuel shortages.

Three companies are nearing Dividend King status: ExxonMobil (XOM) with 44 years of consecutive dividend increases, Atmos Energy (ATO) with 42 years, and Chevron (CVX) with 39 years. XOM's Q3 2026 free cash flow was $19.1B, CVX's was $14.2B. All three show strong financials and growth prospects.

Egypt and Chevron discussed positive results from the Nargis-2 well, confirming gas-bearing intervals and supporting further appraisal. The Nargis discovery, operated by Chevron, is estimated to hold 3.5 tcf of gas. They also discussed developing Cyprus' Aphrodite gas field, aiming to connect it to Egypt's infrastructure. Chevron holds interests in six offshore exploration areas in Egypt.

Venezuela is seeking international investment in its energy sector following reforms to its hydrocarbon law, allowing private participation in exploration and production. Chevron plans a $7 billion investment to double its output to 600,000 barrels per day. Venezuela produces 1.1 million barrels per day, with 67% being heavy crude. The country has signed agreements with TotalEnergies, Blue Energy Partners, Continental Resources, and others, despite ongoing sanctions.

Chevron's subsidiary, CABGOC, extended a contract for the Shelf Drilling Tenacious jack-up rig until February 2027, with an option for another year. The rig, operated by ADES, will work off Angola's coast until Q1 2028, generating approximately $52 million in backlog. Chevron recently made an oil discovery in Angola using this rig.