Chevron Corporation CVX is once again exploring opportunities in Iraq, signaling renewed interest in one of the world's largest oil-producing regions. The company recently held discussions with Iraqi officials regarding potential investments in the giant West Qurna 2 and Nassiriya oil fields. This move follows Russia's Lukoil's exit from the West Qurna 2 project, creating an opportunity for Iraq to bring in another international energy major as a potential operator.
Chevron Evaluates Multiple Growth Opportunities in Iraq
The latest discussions suggest CVX is evaluating opportunities beyond a single producing asset. In addition to West Qurna 2, the company has signed preliminary agreements to evaluate development opportunities at Nassiriya, which includes four exploration blocks and the Balad oil field. CVX is also expected to participate in technical studies for proposed crude export pipeline projects linking Iraq with Turkey and Syria. Together, these initiatives indicate that Chevron is assessing a broader presence across Iraq's upstream sector and export infrastructure rather than pursuing an isolated investment.
Why Iraq Matters to Chevron
The potential opportunity is significant. Iraq possesses some of the world's largest proven crude oil reserves, while fields such as West Qurna 2 rank among the country's highest-producing assets. For CVX, gaining access to these conventional, long-life reservoirs could complement its existing portfolio by adding large-scale production assets capable of generating output for decades. Although the discussions remain preliminary and no final investment decisions have been announced, they underscore Chevron's growing interest in expanding its footprint in the Middle East.
Global Energy Majors Continue Expanding in Iraq
Chevron is not alone in recognizing Iraq's long-term potential.
ExxonMobil Holdings Corporation XOM established its presence through the development of the giant West Qurna 1 field, demonstrating the value international oil companies place on Iraq's low-cost conventional reserves. TotalEnergies SE TTE has taken a broader approach through its Gas Growth Integrated Project, combining oil production, natural gas processing, water infrastructure and renewable energy investments.
Meanwhile, BP BP recently strengthened its commitment by signing an agreement to redevelop the Kirkuk oil fields, while ConocoPhillips agreed to acquire a 42% interest in the project, reinforcing the industry's continued confidence in Iraq's resource base.
Chevron's Iraq Strategy Could Boost Its International Portfolio
Chevron's latest discussions therefore represent more than a return to Iraq — these reflect a potential effort to secure a stronger position in one of the world's most strategically important oil markets. If these preliminary agreements ultimately lead to operating contracts and investment approvals, the company could meaningfully expand its international upstream portfolio while joining other global energy majors that are increasing their investments in Iraq.
Over the past year, Chevron's shares appreciated 21.7%, delivering a solid positive return. However, the stock lagged key integrated energy peers, including ExxonMobil, TotalEnergies and BP’s rise of 38.8%, 38.1% and 29.6%, respectively.
One-Year Share Price Comparison
Image Source: Zacks Investment Research
How Chevron's Valuation Compares
Image Source: Zacks Investment Research
Chevron's trailing P/E ratio stands at approximately 13.5x, slightly below ExxonMobil's 14x. However, its valuation remains substantially higher than BP's 9.19x and TotalEnergies' 8.61x, suggesting investors are willing to pay a higher multiple for the stock than for those European oil majors.
Earnings Outlook and Zacks Rank
Image Source: Zacks Investment Research
Over the past 60 days, the Zacks Consensus Estimate for 2026 earnings has decreased 0.89%, while the estimate for 2027 has increased 3.6%.
Final Thoughts
CVX's renewed engagement with Iraq comes at a time when global energy companies are competing for access to large, low-cost, long-life oil reserves. While the company's discussions remain at an early stage, potential investments in West Qurna 2, Nassiriya and export infrastructure could strengthen CVX's international production portfolio and support long-term growth.
Currently, CVX has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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