Chevron Seeks Better Returns from Iraq's West Qurna 2 Oilfield
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Source: seekingalpha
- Acquisition Conditions: Chevron is negotiating with the Iraqi oil ministry to improve contractual terms for acquiring the West Qurna 2 oilfield from Russia's Lukoil, aiming to enhance investment returns and solidify its business presence in Iraq.
- Nationalization Impact: The Iraqi government recently nationalized the West Qurna 2 field due to U.S. sanctions on Lukoil, compelling the company to sell its assets by February 28, which impacts Chevron's acquisition plans.
- Contract Reform: Iraq has shifted to profit-sharing agreements in contracts signed with global oil majors over the past two years, aiming to attract more investment and increase production, providing a more favorable investment environment for Chevron.
- Market Competition: The West Qurna 2 project previously had low returns under service contracts, and Chevron's acquisition will enhance its competitiveness in the Iraqi market, especially following its $53 billion acquisition of Hess, further driving international expansion.
Analyst Views on CVX
Wall Street analysts forecast CVX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVX is 176.95 USD with a low forecast of 158.00 USD and a high forecast of 206.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 167.500
Low
158.00
Averages
176.95
High
206.00
Current: 167.500
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
