On August 19, 2025, in Baghdad, Iraq, the Iraqi Oil Ministry finalized an agreement in principle with U.S.-based Chevron for the Nassiriya oil project, as announced by Prime Minister Mohammed Shia al-Sudani. The initiative encompasses four exploration blocks and the development of additional producing oil fields in the southern province of Dhi Qar.

Chevron logo is seen in this illustration taken, October 23, 2023.

In recent years, Iraq has successfully attracted major international oil companies, reversing a previous trend of reduced foreign involvement. Improved contract terms have facilitated significant investments, including deals with France’s TotalEnergies and the UK’s BP, totaling over $50 billion in commitments. These efforts reflect Iraq’s focus on expanding its energy sector through partnerships with global firms.

“We are confident that Chevron, with its proven track record and expertise in successfully developing oil and gas projects, has the resources, experience, and technology to support Iraq to further develop new energy resources,” said Frank Mount, Chevron’s vice president of corporate business development, in a statement.

The groundwork for this collaboration began in 2021, when Iraq authorized its National Oil Company to negotiate with Chevron for the development of oilfields in Nassiriya. At that time, the Oil Ministry outlined plans for large-scale projects in Dhi Qar, targeting an initial production capacity of 600,000 barrels of crude oil per day within seven years of project commencement. These initiatives include advancements in oil, gas, and water injection sectors to enhance output and efficiency.

Prime Minister al-Sudani emphasized that the government has adopted a new strategy to foster partnerships with international oil companies, particularly those from the United States. This approach aims to leverage advanced technologies and expertise to bolster Iraq’s energy infrastructure. The agreement with Chevron is expected to contribute to the region’s economic growth by tapping into Nassiriya’s substantial oil reserves.

The Nassiriya project aligns with Iraq’s broader objectives to modernize its energy sector and increase production capacity. Chevron’s involvement is anticipated to bring cutting-edge technology and operational experience, supporting the development of both existing fields and new exploration areas in Dhi Qar. This collaboration marks a significant step in strengthening Iraq’s position in the global energy market while promoting sustainable growth in its oil industry.