Chevron Is Negotiating for a Stake in a Massive Oilfield in Iraq. 2 Key Takeaways for Investors.

The Motley Fool

by newsfeedback@fool.com (Matt DiLallo)

February 24, 2026

AI-Generated Deep Dive Summary

Chevron (NYSE: CVX) is reportedly in advanced negotiations with the Iraqi government to secure a controlling stake in the West Qurna 2 oilfield, a massive reserve that has been nationalized following U.S. sanctions against Lukoil, which is linked to Russia. This move could mark a significant expansion for Chevron into one of the most geopolitically sensitive and high-stakes energy regions globally. The deal, if finalized, would position Chevron as a key player in Iraq’s oil sector, potentially offering substantial rewards but also exposing the company to increased risk. The decision by Iraq to nationalize West Qurna 2 came after U.S. sanctions were imposed on Lukoil, which is partially owned by Russia, in an effort to pressure Moscow over its ongoing war in Ukraine. This shift in control has created an opportunity for Chevron to step into a leadership role in one of the Middle East’s most lucrative oilfields. The company’s potential involvement could signal a broader strategic pivot by Western energy firms to strengthen their presence in regions with abundant resources, despite the associated risks. For investors, this development carries two key implications. First, it highlights Chevron’s willingness to pursue high-risk, high-reward opportunities that align with its long-term growth strategy. The company has consistently sought to diversify and expand its global portfolio, particularly in regions where other major players may be retreating due to political or economic instability. A successful contract for West Qurna 2 could significantly boost Chevron’s production capacity and reinforce its position as a leading global energy producer. Second, the deal underscores the ongoing tension between geopolitical pressures and business interests in the oil and gas sector. While the U.S. has been pushing Iraq to nationalize foreign assets tied to Russia

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Originally published on The Motley Fool on 2/24/2026