Chevron's Strategic Push: Securing Major Oil Assets in Iraq and Reviving Venezuelan Exports

Chevron secures exclusive rights to negotiate for Iraq's West Qurna 2 oil field and resumes Venezuelan crude shipments to India, boosting its global production strategy.

Chevron Corporation is aggressively advancing its global growth strategy through two significant, simultaneous moves. The U.S. energy giant has secured exclusive negotiating rights for one of the world's largest oil fields in Iraq while resuming shipments of Venezuelan crude to India. These developments have the potential to substantially boost the company's overall production volumes.

Solid Quarterly Performance Underpins Expansion

The company's latest strategic maneuvers are built upon a foundation of robust operational and financial results. For the fourth quarter of 2025, Chevron reported adjusted earnings of $3.0 billion, or $1.52 per share, surpassing analyst estimates of $1.45. Production hit a record 4.05 million barrels of oil equivalent per day, marking a 21% year-over-year increase.

Looking ahead to 2026, management forecasts daily output between 3.98 million and 4.1 million barrels. In a further sign of financial strength, Chevron's board raised the quarterly dividend by four percent to $1.78 per share.

Exclusive Talks for Iraq's West Qurna 2 Field

In a major play for Middle Eastern resources, Chevron has obtained exclusive rights to negotiate for the West Qurna 2 oil field in Iraq. According to a February 23rd announcement from the Iraqi government, the company will engage in one-year talks with the state-owned Basra Oil Company (BOC) for a new operating contract.

Currently yielding approximately 480,000 barrels per day—about ten percent of Iraq's total oil output—the field's capacity could be significantly expanded. Iraqi Oil Minister Hayan Abdel-Ghani projects that under Chevron's operatorship, production could rise to between 750,000 and 800,000 barrels daily.

This opportunity arose after the previous operator, Lukoil, was compelled to withdraw from the field in November 2025 due to U.S. sanctions. The Russian firm had held a 75% stake. The current plan involves BOC initially taking over the contract before transferring it to Chevron once final terms are settled. Chevron has emphasized that "competitive economic terms" will be crucial for a final agreement. The deal still requires approval from both the Iraqi Ministerial Council and the U.S. Treasury Department.

Venezuelan Oil Exports Regain Momentum

In a parallel development, Chevron has sold a cargo of Venezuelan heavy Boscan crude to India's Reliance Industries, marking the first such shipment since December 2023. This particular grade of oil had not been exported for roughly six years.

This transaction follows the easing of U.S. sanctions on Venezuela in January 2026, which has led to a notable recovery in the country's exports. Shipments have increased to around 800,000 barrels per day, up from approximately 500,000 barrels in December. In preparation for this revived trade, Chevron has chartered dozens of tankers on time-charter contracts specifically dedicated to transporting Venezuelan crude.

Together, these initiatives in Iraq and Venezuela represent a concerted effort by Chevron to secure long-term, high-volume production assets, positioning the company for future growth against a backdrop of strong current performance.