US oil giant Chevron Corp (NYSE: CVX) is on the hunt for a new oil investment, and it is looking into the potentially lucrative and unstable area of Iraq.
Chevron is mulling over a memorandum of understanding with the Iraqi government to further explore and develop one of Iraq’s Nassiriya oil fields in the south, according to sources told the Wall Street Journal.
The size and scope of the potential deal has not yet been defined, but a smaller deal is likely to be defined in terms of hundreds of millions.
The oil field is difficult to explore, according to the WSJ, but estimates suggest its holdings amount to about 4.4 billion tons of crude.
Currently, the Nassiriya oil field produces about 90,000 bd – but the oil field – and the country in general – has been rocked with protests, adding another layer of risk to the US major to any project undertaken in Iraq.
The investment comes after Chevron’s $ 5 billion acquisition, which helped the U.S. major get his hands on the giant offshore Leviathan gas field at a time when most oil and gas companies are too busy to write off their assets instead of making new investments.
Despite its search for additional investment, Chevron reported a net loss of $ 8.3 billion for Q2 on the back of value-added costs, as oil prices fell and because it pulled out of Venezuela completely – the latter resulting in $ 2.6 billion in write-downs.
The $ 8.3 billion loss for Q2 compares with revenue of $ 4.3 billion for Q2 2019.
Chevron also warned in its Q2 report that Q3’s financial results could continue to be depressing.
Chevron did not comment on the potential deal, according to the WSJ.
By Julianne Geiger for Oilprice.com
More top reads from Oilprice.com:
Back to the home page
.
