Iraq has signed a new agreement with U.S. energy giant Chevron to explore and develop several oil fields, including the strategic Nassiriya project. The move underscores Baghdad’s efforts to lure back international players after years of limited foreign investment in its energy sector.

The Nassiriya initiative covers four exploration blocks along with producing fields in the southern province of Dhi Qar. Plans for the region also include large-scale oil, gas, and water injection projects, with a production target of 600,000 barrels of crude per day within seven years.

Prime Minister Mohammed Shia al-Sudani said the deal reflects his government’s revised approach to working with global oil companies, particularly from the United States. Improved contract terms have been central to Iraq’s success in attracting fresh commitments from energy majors.

Over the last two years, companies such as TotalEnergies and bp have pledged more than $50 billion in combined investments, signaling renewed confidence in Iraq’s oil and gas sector.

Chevron’s vice president of corporate business development, Frank Mount, noted that the company brings the expertise, resources, and technology required to help Iraq unlock new energy opportunities.

At the same time, independent Chinese operators are expanding their footprint in the country, aiming to double output to 500,000 barrels per day by 2030. Their ability to deliver projects faster and at lower cost has made them increasingly competitive against larger state-owned firms.

The latest Chevron deal marks another step in Iraq’s strategy to strengthen its energy partnerships and boost long-term oil production capacity, even as competition for investment intensifies in the global energy market.