Chevron seeks improved terms in Iraq talks before taking over Lukoil oilfield - sources

A Chevron logo at the Chevron building in Houston, Texas, U.S. August 19, 2025. REUTERS/Kaylee Greenlee

BASRA/LONDON, Jan 28 (Saudi Arabia Breaking News) – U.S. oil major Chevron is seeking improved contractual terms from Iraq as a condition for taking over the giant West Qurna 2 oilfield from Russia’s Lukoil, three sources familiar with the matter said.

Iraq nationalised the oilfield earlier this month after the United States imposed sanctions on Lukoil linked to the war in Ukraine, Reuters reported. The sanctions made it difficult for Lukoil to operate internationally, including in Iraq, and Lukoil has until Feb. 28 to sell its assets under the U.S. measures.

Chevron and Iraq’s oil ministry are discussing changes to the contract terms, the sources said. Any agreement on revised terms would require cabinet approval, two of the sources said.

A Chevron spokesperson said the company does not comment on commercial matters, adding that it continues to assess potential opportunities globally and complies with applicable laws and regulations. Iraq’s oil ministry told Reuters talks were continuing and that negotiations remained under discussion. Lukoil did not respond to a request for comment, Reuters said.

West Qurna 2 is among the world’s largest oilfields, accounting for about 0.5% of global oil supply and nearly 10% of Iraq’s output, according to Reuters. State-run Basra Oil Company has taken over operations for 12 months while the ownership issue is resolved, two officials told Reuters.

Reuters reported Iraq has moved in recent years toward more attractive terms for international operators, including profit-sharing structures, after producers previously complained of poor returns under service-contract models.