Chevron set to sign Iraq oil and pipeline deals Friday

Iraqi Prime Minister Ali al-Zaidi's visit to Washington this week is yielding a wave of energy agreements, with Chevron ↘ 1.02% poised to formalize memorandums of understanding with Baghdad covering the West Qurna 2 and Nassiriya oilfields as part of a broader pipeline deal that would route Iraqi crude through Syria to the Mediterranean Sea.

The Deals Taking Shape

Two Iraqi officials told The Cradle that a deal is scheduled to be signed on Friday involving Iraq, Chevron, TI Capital, and Qatar's UCC construction firm for pipeline feasibility work. The agreement follows Iraq's Council of Ministers approving a preliminary principles agreement with the US-Qatari consortium to conduct technical studies for an oil pipeline extending to the Syrian port of Baniyas. Iraqi Oil Ministry spokesperson Salim al-Rikabi confirmed the agreement carries no financial or contractual obligations at this stage and is limited to assessing technical feasibility.agbi+2

TI Capital, a venture firm founded by associates of Tom Barrack — who serves as the US special envoy for Syria, Iraq, and ambassador to Turkey — has been central to pipeline rehabilitation discussions. A joint statement from Zaidi's office and Barrack in June referenced plans to "advance a memorandum of understanding with TI Capital to rehabilitate the Kirkuk-Baniyas Pipeline as a vital oil export route".x+1

A Broader US-Iraq Energy Push

The pipeline and oilfield agreements are part of a package assembled ahead of Zaidi's first White House visit. President Trump hosted the Iraqi prime minister on Tuesday, July 14, with both leaders pledging to deepen economic ties. "We will have a strong partnership with Iraq in the oil field, and we will announce it very soon," Trump said.aljazeera+2

Chevron signed preliminary agreements with Iraq's state-owned Basra Oil Company in February, securing exclusive negotiation rights for 12 months to take over the 480,000 barrel-per-day West Qurna 2 field from Russia's sanctioned Lukoil PJSC LUKOIL, and to develop the Nassiriya field and four exploration blocks in Dhi Qar province. Iraq's oil minister said production at West Qurna 2 could nearly double to 800,000 barrels per day under Chevron's management.reuters+2

The Pipeline's Strategic Calculus

The revived Kirkuk-Baniyas pipeline — roughly 500 miles running from northern Iraq through Syria — would give Iraq an export route that bypasses the Strait of Hormuz, reducing Iran's leverage over global energy supplies. Reuters reported on Monday that the US State Department is actively supporting the effort. Bloomberg reported that Barrack has convened discussions with officials from both countries and companies including Chevron about reviving the long-defunct route.bloomberg+1

The pipeline, originally built in the 1970s, has been mostly out of service since it was damaged during the 2003 US-led invasion of Iraq. Rehabilitation costs are estimated at $4 billion to $5 billion.thenationalnews+1