Oil Major Chevron Eyes Next Big Oil Investment in Iraq

Oil Major Chevron Eyes Next Big Oil Investment in Iraq

Chevron, the US-based oil major giant, is looking to crack a deal with Iraq for new oil investment in a potentially risky, unstable but lucratively profitable area. The company is in talks for an MOU to further develop and explore one of the Nassiriya oil fields in the south in Iraq. The deal amount is not unveiled yet but is expected to be in hundreds of millions.

Nassiriya fields currently produce around 90,000 barrels per day but the country, along with the oil field, is filled with protests, which is a massive risk for the US major. Although, the southern field is challenging to explore but is believed to hold around 4.4 billion barrels of crude.

Earlier, the US oil company posted a net $8.3B loss for the second quarter as compared to the $4.3 billion profit last year for the same period. Chevron also posted that a similar losing scenario might continue in the third quarter too. The loss was led majorly by the company getting out of Venezuela utterly, costing write-down of around $2.6 billion, and additional costs with the falling oil prices.

However, unlike other major gas and oil firms, which are messed up in writing down their assets, Chevron is making continuous new investments. Earlier, the firm acquired Noble for $5 billion that is expected to help the USA in getting a hand in the Leviathan gas field, the giant offshore.

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