Chevron Corp. and Total confirmed that they are in talks with the Iraqi government to expand production at a major oil field in Basra, southern Iraq.
The negotiations will finalize a two-year deal to increase oil output at the West al-Qurna oil field in Basra, Iraq's second-largest city.
Chevron confirmed their involvement after Total's chief executive officer publicly discussed the proposed deal Thursday at an oil industry conference in Paris.
We just want to be consistent with them and confirm that what they're saying is accurate, Glaubitz said.
West Qurna field is located about 40 miles west of Basra and is among Iraq's 10 super giant fields with its reserves estimated between 15 to 21 billion barrels, according to Iraqi Oil Ministry and Energy Information Administration.
Chevron is interested in helping the Iraq government's objectives to develop its oil and gas industry, Glaubiz said.
Iraq's oil ministry expressed approval of foreign companies who want to invest in Iraq. By using the companies financial resources and technical expertise, Iraq's fields can become more developed and production is increased.
Royal Dutch Shell PLC, BP PLC, ExxonMobil Corp. and Chevron Corp. submitted technical and financial proposals last December, to develop five fields in southern and northern Iraq.
Iraq said it plans to compensate these companies with crude oil rather than in cash.
Iraq has the world's third-largest oil reserves, totaling more than 115 billion barrels. Iraq's average production for February was 2.4 million barrels per day while exports average 1.93 million barrels per day.