Chevron Eyes Iraq Oil Expansion As It Seeks Iran War Exit Strategy

An oil and gas giant is planning expansion into the Middle East to avoid the Strait of Hormuz during the Iran war.

Chevron plans to sign memorandum of understanding with Iraqi government, creating new access points to Qurna 2 and Nassiriya oil fields, according to the Wall Street Journal. Iraqi talks with Chevron are to produce technical studies and explore potential pipeline routes to bypass the Strait of Hormuz, an executive told Reuters.

“Further to the agreements signed in February 2026, Chevron Exploration Services, Inc. and Basra Oil Company have signed an agreement which advances commercial negotiations in respect of West Qurna (Phase 2),” Chevron spokesperson Bill Turenne told the Daily Caller News Foundation.

“Each of the Government of the Republic of Iraq and the Government of the Syrian Arab Republic have respectively signed a Heads of Agreement with Urbacon Concessions Investments WLL, TIC Infra II LLC and Chevron Business Development EMEA Ltd. in connection with a potential cross-border oil pipeline project from Iraq through Syria to the Mediterranean Sea,” Turenne continued. “Chevron looks forward to sharing its expertise in successfully developing oil and gas projects to support Iraq in further developing its energy resources.”

The State Department did not immediately respond to the DCNF’s request for comment.

West Qurana 2 produces about 460,000 barrels per day, Chevron had open talks before the Iran war broke out, believing there was broader potential, Quartz reported.

President Donald Trump hosted Iraqi Prime Minister Ali al-Zaidi on Tuesday to the Middle Eastern country’s oil reserves. They spoke about removing the US military on Sept. 30, and having American oil companies start newfound relationships.

About 20% of the world’s oil passed through the Strait of Hormuz, prior to the war which stalled its traffic, causing global energy prices to skyrocket.

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