Chevron Evacuates American Oil Workers from Iraq Amid Rising Tensions

In a strategic move, Chevron, the second-largest oil company in the United States, has decided to pull its American oil workers out of Iraq. This decision follows the urging of the US Embassy and a series of escalating events, including the killing of Iranian Quds Force leader Qassem Soleimani.

Chevron's operations in Iraq are predominantly situated in the Kurdistan Region, which has not been without controversy. Despite facing opposition from the Iraqi government, Chevron has maintained its presence in the region. The company holds a 50% operating stake in the Sarta production-sharing contract and a 40% non-operating interest in the Qara Dagh production-sharing contract, as detailed on Chevron's official website.

While American personnel are being evacuated, Chevron has entrusted the oversight of its Iraqi operations to local Kurdistan workers. This move ensures continuity in Chevron's activities while prioritizing the safety of its international staff.

It is noteworthy that Chevron faced blacklisting by Iraq in 2012 due to its oil deal with Kurdistan. This decision, however, did not dissuade Chevron from pursuing its interests in the region. The Qara Dagh and Sarta blocks, part of Chevron's portfolio, were subject to disputes. Despite the challenges, Chevron persevered in its Kurdish pursuits.

This recent evacuation echoes previous instances, such as in October 2017 when Chevron halted its Kurdistan activities amid heightened tensions following an independence referendum. The Iraqi government's seizure of oilfields around Kirkuk at that time resulted in a temporary disruption of Chevron's operations. Despite these challenges, Chevron resumed its activities in the region.

Notably, Chevron contemplated a similar evacuation in May 2019 in response to a US order for the evacuation of non-essential government employees from Iraq. The concern then was related to heightened security issues, citing a "high risk for violence and kidnapping" for US citizens in Iraq.

As tensions in the region continue to fluctuate, Chevron's decision underscores the complex geopolitical landscape influencing the operations of major oil companies in Iraq. Stay informed with Oil Price for the latest updates on this evolving situation