Chevron Gains Iraq Oil Pact as U.S. Reopens Door to Venezuelan Crude

Iraq’s Prime Minister Mohammed Shia al-Sudani said Baghdad has signed a heads of agreement with Chevron Corp. to develop four oil- and gas-exploration blocks in the Nasiriya area of southern Dhi Qar province and to advance production at the Balad oil field north of Baghdad. The deal, which still requires a final contract, would give the U.S. major its first upstream foothold in federal Iraq after years of on-and-off talks. Iraqi officials have revamped fiscal terms, including profit-sharing elements, in a bid to draw fresh foreign investment and lift national output. The accord underscores heightened interest from Western energy companies in Iraq’s prolific reserves, following recent agreements with firms such as TotalEnergies and BP. Industry analysts say Nasiriya alone could eventually produce up to 300,000 barrels a day, potentially helping Iraq narrow a capacity gap as OPEC pledges higher supply targets. Separately, vessel-tracking data show the United States has resumed imports of Venezuelan crude for the first time since April after Washington granted Chevron a restricted operating license last month. Two Chevron-chartered tankers, the Mediterranean Voyager and the Canopus Voyager, arrived in U.S. waters on 21 Aug. carrying Boscan and Hamaca grades bound for refineries in Port Arthur, Texas, and New Orleans, Louisiana. Chevron had been shipping roughly 252,000 barrels a day from Venezuela before sanctions-related payment issues halted the trade.