Iraq Seeks to Double Oil Output in Six Years; Implications for Chevron
Iraq aims to increase its oil production from around 4 million barrels per day (bpd) to between 8 and 10 million bpd within six years. This ambitious target comes after a recent delegation visit to Saudi Arabia seeking support from OPEC, aiming to secure a higher production quota. The plan could significantly impact Chevron, which has signed memorandums of understanding with Iraq for the West Qurna 2 and Nassiriya oilfields. Chevron is set to take operational control of the West Qurna 2 field, currently producing nearly 10% of Iraq's total output. The company aims to boost production at this site from 460,000 bpd to between 750,000 and 800,000 bpd after assuming operations. Meanwhile, the Nassiriya project is expected to reach an initial capacity of 600,000 bpd within seven years. Despite Iraq's vast oil reserves, production has been disrupted by geopolitical tensions in the region, particularly following military strikes against Iran and retaliatory attacks on shipping through the Strait of Hormuz. Chevron faces both opportunities and risks as it explores new pipeline options to support increased output.
Topics: Chevron Iraq oil industry OPEC production expansion