Chevron plans to sign preliminary accords with Iraq on Friday, advancing its bid to develop two major southern oil fields and join a U.S.-led consortium studying a pipeline that would route Iraqi crude to Syria's Mediterranean coast, sidestepping the Strait of Hormuz.

The moves come as Baghdad, its Gulf exports throttled by the Iran war, scrambles for durable alternatives to the chokepoint that carried about 20% of global oil before fighting began Feb. 28.

The nonbinding agreements will underscore Chevron's push toward commercial contracts on the West Qurna-2 and Nasiriyah fields, a senior company executive said Thursday.

West Qurna-2, one of Iraq's largest producing assets, holds an estimated 14 billion barrels in recoverable reserves and was pumping roughly 460,000 barrels a day before Baghdad cut production during the Hormuz shutdown, The National reported.

Chevron signed preliminary agreements in February to develop Nasiriyah, four exploration blocks in Dhi Qar province, and the Balad field in Salaheddin, according to a statement from Basra Oil Company at the time.

The company also secured exclusive negotiating rights for West Qurna-2 after Iraq removed Russia's Lukoil as the operator and returned the project to state control this year.

The pipeline track runs in parallel. Iraq's cabinet earlier this month approved a preliminary agreement authorizing Basra Oil Company to work with a consortium of Chevron, U.S.-based Capital TI, and Qatar's UCC Holding to conduct feasibility studies for routes, including Basra-Haditha-Kirkuk-Ceyhan and Basra-Haditha-Baniyas.

Bloomberg reported that discussions have focused on reviving the long-shut Kirkuk-to-Baniyas line running to Syria's western coast.

Thomas Barrack, President Donald Trump's special envoy for Syria and Iraq, has convened the talks with officials from both governments and the companies.

Washington has eased restrictions on Damascus over the past year, opening the door for Chevron, TotalEnergies, and ConocoPhillips to explore production in Syria.

Trump has also pledged to lift U.S. sanctions on Syria and met with Syrian President Ahmad al-Sharaa on the sidelines of this month's NATO summit in Ankara, Turkey.

The stakes for Iraq are immediate.

OPEC's second-largest producer before the war, Iraq has cut oil output by about 60% since the Iran war began, straining government finances.

The agreements follow Iraqi Prime Minister Ali al-Zaidi's White House meeting with Trump on Tuesday, where the two leaders pledged closer economic cooperation and expanded U.S. investment in Iraq's energy sector.