US supermajor Chevron is poised to return to Iraq after on Tuesday signing an agreement in principle for the Nassiriya project that comprises four exploration blocks and for Chevron to develop the Balad oilfield, plus other potential upstream ventures.
The preliminary deal signed with Iraq’s Ministry of Oil is aimed at boosting production in the Middle East nation’s southern Dhi Qar governorate and other strategic areas.
Based on previous studies and a 3D seismic survey, it is estimated the Nassiriya field has 4.36 billion barrels of proven oil reserves, MEES earlier reported. Associated gas produced from the Nassiriya and Gharraf fields will be captured by the TotalEnergies-led Gas Growth Integrated Project (GGIP).
Chevron back in 2009 had submitted its bid to exploit the asset, for which rivals Eni, Repsol and Nippon Oil were also invited to bid, but ultimately Nassiriya was not awarded following negotiations with the applicant companies.
Tuesday’s signing under the auspices of Iraq’s Prime Minister Mohammed Shia Al Sudani was attended by senior officials including Iraq’s Minister of Oil Hayan Abdul-Ghani al-Sawad and Chevron vice president Frank Mount.
Al Sudani welcomed the company’s return to the country, “affirming that the government has adopted a different approach in dealing with major oil companies and their investments in Iraq, particularly American ones”, his office reportedly said.
The prime minister also highlighted Chevron’s efforts in transferring oil technology to Iraq, its community contributions and environmental policies that it adheres to in its projects.
Chevron in a statement said that the agreement between with the Iraqi Oil Ministry allows the company to “assess potential opportunities in Iraq and establishes exclusive negotiations between” the two.
The GGIP aims to improve the country’s power supply, including by recovering flared gas from three oilfields and using the gas to supply power plants, helping to reduce Iraq’s import bill.
Despite being the second-largest producer in Opec, Iraq still depends on Iran for about one third of its electricity demand.
