Oil & Gas

Iraq’s Oil Ministry has signed a strategic agreement with US energy giant Chevron to develop the Nassiriya oil field, which consists of four exploration blocks in southern Iraq. In addition to this key project, Chevron will also be involved in developing other oil fields, including the Balad oil field situated north of Baghdad. According to a statement from Prime Minister Mohammed Al Sudani’s media office, this move reflects a broader shift in Iraq’s approach to international oil partnerships, emphasizing a renewed focus on collaboration with major US energy firms. However, no financial details of the agreement were disclosed.

The Nassiriya oil field, with estimated reserves of 4.4 billion barrels, represents a significant opportunity for Iraq to strengthen its production capabilities. In the first half of 2025, the country has already developed 113 oil wells, comprising 27 newly drilled producing wells and 86 rehabilitated ones that had experienced a decline in output. These efforts are part of Iraq’s broader strategy to expand its crude oil production capacity by over 50 percent. The Oil Ministry’s recent report underscores Iraq’s urgency in meeting its energy goals amid growing regional competition and evolving global energy dynamics.

Iraq, OPEC’s second-largest oil exporter, has set an ambitious five-year plan to raise its oil production capacity to nearly 7 million barrels per day. This expansion will be driven by various oilfield development initiatives awarded to international companies including France’s TotalEnergies, the UK’s BP, and several Chinese firms as part of licensing rounds 5 and 6. In parallel, Iraq aims to significantly ramp up its gas output, with Oil Minister Hayan Abdel Ghani estimating that new projects could add around 3.5 billion cubic feet per day to the country’s gas production while boosting proven oil reserves from 145 billion to 160 billion barrels.

Further development projects are underway, including a $25 billion initiative involving BP to revitalize four aging oilfields in the Kirkuk province, potentially adding 450,000 barrels per day to Iraq’s output. Meanwhile, US energy firms are expanding their presence across North Africa as well—ExxonMobil recently resumed exploration activities in Libya after a decade-long hiatus, and Algeria is close to finalizing agreements with both Chevron and ExxonMobil to explore and develop its gas reserves, including unconventional shale resources. These regional developments reflect a growing momentum for US oil companies in the Middle East and North Africa amid shifting energy dynamics and strategic realignments.