Chevron Evacuates Oil Workers From Kurdistan Region of Iraq

Zacks Equity Research

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Zacks•January 7, 2020

Chevron Corporation CVX has evacuated all its American personnel from Iraq as a precautionary measure, following growing tension in the Middle East. Due to the killing of an Iranian general Qassem Soleimani and Iraqi militia commander Abu Mahdi al-Muhandis in an U.S. airstrike in Baghdad, the U.S. Embassy in Baghdad urged all American citizens to leave Iraq immediately.

In northern Iraq, the company holds stake only in the Kurdistan Region. It owns a 40% non-operating interest in the Qara Dagh production-sharing contract, and operates and has a 50% interest in the Sarta production-sharing contract. Evacuation of all U.S. oil workers from the region implies that the company has no more American citizens in the Iraqi soil. Local staff in the region is currently maintaining its operations in the Kurdistan. Per the Iraqi oil ministry, other foreign workers in the country have been retained and operations remained normal.

The largest publicly-traded U.S. energy company, Exxon Mobil Corporation XOM also has operations in the southern part of the country. The company is monitoring the situation in the region and has provided safety measures for workers. Other major energy companies like BP plc BP and Royal Dutch Shell plc RDS.A also have operations in the country.

San Ramon, CA-based Chevron is one of the largest publicly-traded oil and gas companies in the world, in terms of proved reserves. Its key assets are focused on the United States, Australia, most of South America, as well as eastern and central Asia. The company also operates in western Africa. It is expected to release fourth-quarter 2019 results on Jan 31, 2020. The Zacks Consensus Estimate for earnings for the quarter is pegged at $1.56 per share, indicating a 24.3% decline from the year-ago period.

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