Iraq plans to sign MoU with Chevron to explore oil in Dhi Qar province

Iraq reportedly plans to sign a memorandum of understanding (MoU) with American multinational energy firm Chevron for oil exploration in the country’s Dhi Qar province.

The deal comes as part of Chevron’s interest in exploring the eastern and western parts of Dhi Qar’s capital city Nasiriyah, Bloomberg reported, citing a person familiar with the matter.

Chevron initiated talks with Iraq, the second-biggest producer of the Organization of the Petroleum Exporting Countries (OPEC), two years ago.

It recently resumed talks with the officials of Iraq’s oil ministry.

Chevron spokeswoman Sally Jones declined to comment on the news, said Bloomberg.

If agreed, the deal is expected to be announced later this week during a scheduled visit to Washington by Iraq’s new Prime Minister Mustafa Al-Kadhimi to meet US President Trump.

The American oil major is seeking to use this year’s oil price crash to secure access to ‘quality reserves’ at a lower cost.

Meanwhile, European oil majors are focusing on a transition towards ‘low-carbon’ energy resources.

In July, Chevron reportedly said that it expects to restart the second train of its Gorgon liquefied natural gas (LNG) plant in Western Australia in early September after completing repair works.

Earlier in the same month, Chevron’s wholly owned subsidiary, Chevron Australia Downstream, acquired Puma Energy (Australia) Holdings for A$425m ($292.2m).

In July, Chevron also agreed to acquire all of independent oil and natural gas E&P firm Noble Energy’s shares after the companies signed a $5bn definitive agreement.