Chevron Prepares Deals for Two Iraqi Oil Fields and Kirkuk-Baniyas Pipeline Study

Chevron is preparing to sign preliminary agreements to invest in the Nasiriyah and West-Qurna-2 oil fields in Iraq and to study rebuilding a pipeline from Kirkuk to the Syrian port of Baniyas. The Houston-based company confirmed it is discussing possible investments in the two fields.

A spokesperson said the firm looks forward to sharing its expertise in developing oil and gas projects to support Iraq in further developing its energy resources.

A senior Chevron official told the Wall Street Journal the company is considering whether to build a new pipeline along the Kirkuk-Baniyas route or update existing infrastructure. The original pipeline has been shut down for more than two decades after damage in 2003. The same official described the preliminary deals as a long ways from the finish line.

Iraqi Prime Minister Ali Al-Zaidi visited Chevron headquarters in Houston on Thursday and met with a group led by Chevron Vice Chairman Mark Nelson. The prime minister had met with President Trump in the Oval Office on Tuesday. A senior Trump administration official said the United States is facilitating conversation between Iraq and Syria on future energy development projects and supports the growing diplomatic relationship between the two countries.

Chevron declined to comment on reported pipeline talks, stating it does not comment on third-party statements or commercial matters. On Thursday, American diesel prices rose above $5 a gallon to an average of $5.01, according to AAA. Regular gasoline reached $3.94 a gallon, up about 10 cents from the prior week.

The Strait of Hormuz carries about 20 percent of global oil supplies. President Trump said this week the strait is reopened for all nations except Iran.