A senior executive at Chevron said the company will sign memoranda of understanding on Friday with the Iraqi government to advance its interests in the West Qurna 2 and Nassiriya oil fields.
The executive added that the American energy giant is also continuing talks with Baghdad to prepare technical studies and assess potential pipeline routes to export crude oil out of Iraq and bypass the Strait of Hormuz.
Iraqi Prime Minister Ali al-Sudani, who took office in May, visited Chevron's headquarters in Houston on Thursday as part of a five-day official visit to the United States that included a meeting with President Donald Trump on Tuesday.
During this week's visit, the Iraqi government is seeking to strengthen its partnerships with the United States with the aim of increasing oil production. Chevron began exclusive negotiations with Iraq in February over the West Qurna 2 field, one of the world's largest oil fields, which currently produces around 460,000 barrels per day.
A senior executive said the preliminary agreement to be signed on Friday will help develop the commercial terms and assist in reaching a final deal that would allow Chevron to operate the field.
Chevron and Iraq had signed a preliminary agreement in August to develop the Nassiriya oil field project, which comprises four exploration blocks, in addition to developing other producing oil fields.