Chevron to Sign Iraq Oilfield MOUs, Eyes Hormuz Bypass Pipeline
CVX sits 26% above its 52-week low of $146.49 on light trading volume (0.2× avg).
Summary
Chevron will sign MOUs with Iraq on Friday to advance its interests in the West Qurna 2 and Nassiriya oilfields. The preliminary agreement progresses commercial terms toward a final deal for West Qurna 2, which currently produces about 460,000 barrels per day. Chevron is also in talks to evaluate pipeline routes that would bypass the Strait of Hormuz, a critical chokepoint that closed in May, and will explore creating a Strait of Hormuz alternative for Iraqi oil. The Iraqi prime minister's visit to Chevron's Houston headquarters underscores the government's push for U.S. partnerships to boost output. This follows Chevron's move into exclusive talks for West Qurna 2 in February and an agreement in principle for Nassiriya last August.
At the time of this announcement, CVX was trading at $184.18 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $366.8B. The 52-week trading range was $146.49 to $214.71. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.