Chevron Moves Closer to Iraq's Biggest Oil Prize—and a Hormuz Exit Strategy

Chevron is taking another step toward expanding its footprint in Iraq, and is set to sign two memoranda of understanding on Friday that will move the U.S. supermajor closer to developing the giant West Qurna 2 oilfield and the Nassiriya project.

The agreements aren't binding, but they push negotiations forward on what could become one of Chevron's biggest upstream investments in years.

West Qurna 2 is no small prize.

The southern Iraqi field currently produces about 460,000 barrels per day after Iraq nationalized the asset earlier this year following…