Key facts
- Chevron is nearing deals for Iraq's West Qurna 2 and Nassiriya oil projects.
- Iraq and Syria signed an agreement to reconstruct the Kirkuk-Baniyas oil pipeline.
- The pipeline aims to bypass the Strait of Hormuz and reach Syria's Mediterranean coast.
- The US is brokering the deal to reduce Iran's regional influence.
- A consortium including Chevron, TI Capital, and Syrian-Qatari billionaire al-Khayyat brothers will rehabilitate the pipeline.
Chevron is nearing agreements for Iraq's West Qurna 2 and Nassiriya oil projects, potentially marking significant upstream investments for the U.S. supermajor. West Qurna 2 currently produces approximately 460,000 barrels per day. Concurrently, Iraq and Syria have signed a cooperation agreement to reconstruct the Kirkuk-Baniyas oil pipeline, a move brokered by the U.S. to bypass the Strait of Hormuz and reduce Iran's regional influence. The U.S. State Department has labeled the pipeline's renewal a "priority infrastructure project of bilateral and regional strategic significance." A consortium including Chevron, TI Capital, and the Syrian-Qatari al-Khayyat brothers will undertake the technical and financial aspects of the rehabilitation, which could take two to three years. The original pipeline, completed in 1952 with a capacity of 300,000 bpd, was shut in the 1980s and largely became inoperative after 2003.