Chevron is purchasing 80 percent of the Sarta and Rovi blocks from India's Reliance Industries Ltd according to the two executives, who requested anonymity, Reuters reported.

Exxon caused a stir in Baghdad last year by signing an exploration deal with the Kurdistan Regional Government in the north, which the central government deemed illegal.

Chevron declined to comment on Wednesday, saying that it continued to be interested in pursuing opportunities that "help Iraq achieve its objectives for the oil and gas industry."

Last November's signing of the Exxon exploration deal with Iraqi Kurdistan marked the first time a major oil company had dealt directly with the Kurdistan Region.

Kurdistan, with its own government, has clashed with Baghdad over autonomy and oil rights. It halted its crude exports in April after accusing the central government of not making due payments.

Another U.S. oil major now enters the mix through the deal with Reliance, which Britain's Sunday Times newspaper said was thought to be worth about $200 million in a report of the talks.