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Chevron Is Negotiating for a Stake in a Massive Oilfield in Iraq: 3 Key Takeaways for Investors

May 04, 2026 — 07:41 am EDT

Written by

Todd Shriber for

The Motley Fool->

Key Points

- Chevron notched a deal to take over production at West Qurna 2 in Iraq.

- By some estimates, that field is one of the most oil-rich in the world.

- The company also has rights to produce at another big Iraqi field.

- 10 stocks we like better than Chevron ›

Alone, the war in Iran is ensuring investors are consuming steady diets of headlines related to oil prices while vaulting the energy sector to the top spot among S&P 500 sectors.

It's a script that's played out time and again. Conflict in the Middle East often stokes upside for oil stocks, and Chevron (NYSE: CVX) is no exception. Shares of the integrated oil Goliath are up 25.11% year to date, thanks in part to the conflict in Iran as well as expectations that Venezuela's oil market will be open for business now that former President Nicolas Maduro is out of the picture.

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Chevron has big opportunity in Iraq, but it could take awhile to manifest in the share price. Image source: Getty Images

Not to be ignored is the oil giant's new access to not one but two Iraqi fields, which could be long-term catalysts for Chevron stock. Let's explore some of the prominent Iraq takeaways for Chevron investors.

Chevron treading lightly on Iraq opportunity

Perhaps to its credit, Chevron isn't overselling its Iraq opportunity set. As things stand today, the Middle East, as a region rather than just one country, accounts for only 5% of the company's total output.

On the company's first-quarterearnings conference callon Friday, May 1, CEO Michael Werth acknowledged Chevron has "some opportunities in the Middle East region," adding that there are sources of interest in other areas as well. In fact, Iraq wasn't directly mentioned on the call, but several countries were, including Angola, Argentina, and Venezuela, among others.

So it's clear that Chevron isn't putting all its eggs in the basket of Iraq, a good thing for investors, and that it could take some time for the company's ventures in the country to flow through to its bottom line.

Chevron is accessing huge amounts of crude

Investors experienced with traditional energy stocks, including Chevron, know that the lifeblood of the exploration and production side of the oil business is the discovery of new reserves. After all, no oilfield provides infinite access to fresh barrels.

In Iraq, Chevron is checking the access box in a big way. The West Qurna 2 oil field, where Chevron is replacing a Russian competitor, has estimated recoverable reserves of 13 billion barrels and accounts for 10% of Iraq's total output. The Nasiriyah oil field, where Chevron is replacing another Russian company, is the smaller of the two deals, but still significant because it has 4.36 billion in estimated recoverable reserves.

With Chevron's superior operational expertise, the company's involvement in those two oilfields could put Iraq on pace to produce 6 million barrels per day or more by 2029, bolstering its coffers and those of Chevron, too.

There are geopolitical implications

To the surprise of no investors well versed in the oil patch, there are geopolitical implications tied to Chevron's involvement in Iran. As noted above, the company is displacing two Russian companies, which is likely to the delight of the White House.

There's more. Russia is a major supplier of crude to China, and with Chevron entering Iraq, China may be forced to replace a portion of the crude it previously purchased from the Kremlin. The White House is likely perfectly fine with that scenario, suggesting Chevron's Iraq ventures may receive long-term support from the U.S. government.

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