ERBIL, Kurdistan Region of Iraq – Iraq’s oil ministry and US energy company Chevron held a meeting Tuesday to continue discussions on the development of the major West Qurna 2 oil field, aiming to finalize the deal before the end of the year, according to a statement from the ministry.

The Iraqi government and Chevron have signed several agreements since February, under which the American energy firm has committed a $200 million advance payment toward a future operating contract for West Qurna 2, one of the world’s largest undeveloped oil fields, located northwest of Iraq’s southern city of Basra.

Iraqi Oil Minister Basim Mohammed Khudair held a meeting on Tuesday with Joe Cook, Chevron’s vice president of business development, “to continue discussions and negotiations” regarding the West Qurna 2 field contract, according to the statement from the ministry. 

“Agreements have been reached, with plans to sign the contract by the end of this year,” the statement cited Khudair as saying, adding that further discussions on a development contract for the Nasiriyah field and four exploration blocks will continue. 

75 percent of the West Qurna was previously owned by Lukoil, a Russian firm that has been the target of US sanctions for its alleged involvement in financing Russia’s war in Ukraine.

In November 2025, Lukoil declared force majeure at the West Qurna 2 under the sanctions, with sources telling Reuters at the time that the firm had informed Iraq’s oil ministry that it was unable to continue normal operations at the field.

In February, then-Iraqi Prime Minister Mohammed Shia’ al-Sudani oversaw the signing of an agreement with Chevron to pave the way for the transfer of West Qurna 2 from Lukoil to the American energy giant.

The oil ministry will “provide support” and “remove all obstacles” for the US companies in line with Baghdad’s directives, Khudair said on Tuesday. 

Iraq's oil exports have suffered greatly as a result of the US-Israeli war on Iran and the closure of the Strait of Hormuz.

The Chevron official expressed enthusiasm for “building a long-term partnership and collaboration” regarding the West Qurna 2 and Nasiriyah fields, the ministry statement added.

West Qurna 2 covers an area of 340 squared kilometers and holds around 14 billion barrels of recoverable oil reserves, according to data from Lukoil.

In mid-July, Iraqi Prime Minister Ali al-Zaidi called on Chevron to expand its operations in Iraq to achieve Baghdad’s objectives of increasing crude oil production and diversifying export routes during his US visit. Days later, the premier oversaw the signing of 48 memoranda of understanding (MoU) between Baghdad and Washington. 

The Iraqi premier in mid-October called for increased oil revenues and production, announcing that “significant measures” would be implemented soon.