Iraq succeeds in attracting major international companies

Iraq succeeds in attracting major international companies

08/27/2025

Baghdad: Morning
The Ministry of Oil’s signing of the Principles Agreement with the American company Chevron reflects a new approach adopted by the government in opening up to major international companies, following its recent efforts to provide a safe and transparent investment environment. Prime Minister Mohammed Shia al-Sudani welcomed Chevron’s return to Iraq, praising its role in transferring oil technology, its community contributions, and its adoption of sound environmental policies in its projects.

International economist Dr. Nabil Rahim Al-Abadi told Al-Sabah that cooperation with Chevron to develop oil fields in the Nasiriyah and Balad regions has significant positives. He explained that a strong technical and financial partner like Chevron can inject significant investments into oil infrastructure, easing the burden on the Iraqi budget.

Latest technologies

Al-Abadi explained that global energy companies possess the latest technologies in exploration, production, and enhanced oil recovery, which can increase extraction and productivity rates. Efficient field development can increase oil production and, consequently, government revenues, on which the country relies heavily (more than 90 percent of budget revenues).

He added that the project will provide direct and indirect job opportunities for local communities, contributing to local economic development. He noted that the partnership with a prestigious global company sends a positive message to other foreign investors regarding the improved business environment and relative stability.

The international expert explained that the Nasiriyah and Balad regions, like other areas in Iraq, require a safe and stable environment to attract long-term investments and protect energy facilities. He emphasized the importance of transparent and accountable cooperation to avoid corruption and ensure that revenues reach the public treasury and are used for the public good.

He pointed out that oil exploration and production have environmental (pollution, water consumption) and social (displacement of communities, change in the social fabric) impacts that must be managed responsibly. He stressed the importance of negotiating a contract that guarantees Iraq’s financial interests and ensures a real and large-scale technology transfer, in addition to obligating the company to purchase materials and services from local contractors, employing and training Iraqi cadres, publishing the terms of the contract and ensuring its subjection to parliamentary and civil society oversight, and working to develop a clear plan to invest additional revenues in productive sectors (education, health, infrastructure) to diversify the economy away from near-total dependence on oil, and conducting a strategic environmental assessment and developing a plan for environmental and social risks.

Regarding the economic aspect of the project, Al-Abadi emphasized that cooperation with a company like Chevron could be a powerful engine for developing the Iraqi oil sector and increasing state revenues, provided that this cooperation is managed wisely and transparently, and free from quotas and corruption. He emphasized that success will depend on the Iraqi government’s ability to negotiate firmly in the country’s long-term interest and create a safe and stable environment for investment, and that this cooperation should be a step towards building national capabilities and not just a temporary source of income. He stated that Chevron is a global energy giant with technical and financial expertise and the ability to develop giant and complex fields, noting that its entry as a partner in the Nasiriyah and Balad fields would be a strong signal to the global energy market and would, in theory, enable a significant increase in production and revenues.

He pointed out that the main challenge does not lie in Chevron’s technical capabilities, but rather in the Iraqi side’s ability to negotiate a fair and transparent contract that guarantees Iraq’s long-term interests, transfers technology, creates job opportunities, and avoids the mistakes made in previous licensing rounds.

Chevron is an American multinational energy company, succeeding Standard Oil. Its headquarters are in San Ramon, California, and it operates in more than 180 countries. It operates in the oil and natural gas sectors, including hydrocarbon exploration and production, refining, marketing and transportation, chemical manufacturing and sales, and power generation. Chevron is one of the largest companies in the world. In the same context, Jassim Al-Aradi, a member of the Baghdad Economic Forum, told Al-Sabah that the paths to building productive sectors in Iraq must be in cooperation with major international companies, noting that this qualitative cooperation with the oil sector giant achieves the highest degree of benefit for Iraq.

Al-Aradi added that the presence of Chevron, a global company specializing in the oil industry, within the Iraqi labor market contributes to developing the energy situation and generates benefits.

A huge financial boost for the country. He pointed out that the shared interests with major international companies bring the best technology to the oil sector, which expands the volume of oil investments, in addition to developing the reality of the transformational industries in the oil fields, which leads to maximizing the financial benefits obtained from the oil sector. In addition, the head of the Iraq Energy Center, Dr. Furat Al-Moussawi, confirmed that the agreement includes work on four exploration blocks and the development of the Balad oil field, in addition to other producing fields and new blocks, which reflects a qualitative shift in the relationship between Iraq and one of the largest global energy companies.

Al-Moussawi added that the agreement strengthens Iraq’s position as a major energy producer, attracting major international energy companies. He explained that Chevron has integrated oil and gas operations, including exploration, production, refining, and marketing. Furthermore, the agreement contributes to achieving geographic diversity in exploration operations, away from overreliance on specific regions.

He pointed out that the agreement represents a message of confidence in Iraq’s investment environment and confirms the government’s seriousness in engaging major companies in developing the oil industry. He explained that the success of this project will have a far-reaching impact on enhancing economic stability, achieving sustainable development, and supporting Iraq’s energy independence.

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