Chevron Operations in Iraq

=History=

During the period of international sanctions on Saddam Hussein's regime, Chevron was one of the companies that purchased crude from the regime as part of the UN Oil-for-food program designed to bring humanitarian aid to the Iraqi people. However in November 2007 Chevron agreed to pay $30 million to settle charges brought against it under the Foreign Corrupt Practices Act (FCPA), but did not admit or deny the allegations made by the Securities and Exchange Commission (SEC). The charges related to approximately $20 million in illegal kickback payments made to Iraq in 2001 and 2002.

In a leaked US diplomatic cable from 2010, Chevron's country manager for Iraq expressed the company's eagerness to invest in post-Saddam Iraq, but "not at any price". According to the cable, Chevron expressed strong interest in a bid round for exploration blocks, which it considered to be politically and economically attractive, however the cable described Chevron's approach towards Iraq as more cautious than other international oil companies (IOCs). Chevron was included on the list of pre-qualified companies to participate in the first licensing round and the company was French Total's original partner for both bidding rounds in 2009, but ultimately refused to join the bidding, regarding the remunerations fees offered as unreasonably low.

=Activities and Contracts=

Rovi and Sarta (Kurdistan)
On the 19 July 2012 Chevron announced that its subsidiaries in Iraq had completed a deal to acquire an 80% interest in two blocks in the northern Kurdistan Region, the Rovi and Sarta blocks. The remaining 20% interest was taken by OMV subsidiaries. under the framework of a Production Sharing Contract (PSC). The blocks lie north of Erbil and covering a combined area of approximately 1,124 square kilometres (km). In retaliation for the contracts signed with the KRG, later that month Iraq's federal government "blacklisted" Chevron, banning them from bidding for exploration licenses in future licensing rounds. The central government considers contracts signed directly with the KRG as illegal.

=References=