BP has secured the final approval from the Iraqi government for a contract aimed at redeveloping key oil fields in the Kirkuk region of northern Iraq.
This arrangement involves collaboration with Iraq’s North Oil Company (NOC) and North Gas Company (NGC). It focuses on the revitalisation of oil, gas, power, and water resources, along with the potential for exploration.
The finalisation of this contract took place during a meeting in Baghdad, attended by Iraqi Prime Minister Mohammed Shia’ Al Sudani, BP’s CEO Murray Auchincloss, and others.
Under this agreement, BP will establish a new operational entity consisting primarily of personnel from NOC and NGC, supplemented by its own employees. This phase targets an oil and gas production milestone exceeding three billion barrels of oil equivalent.
The agreement encompasses the Baba and Avanah domes within the Kirkuk field, along with three adjacent sites, Bai Hassan, Jambur, and Khabbaz, which are currently under NOC management.
The broader potential resource across the contract area could reach up to 20 billion barrels of oil equivalent.
BP’s financial involvement will be closely linked to additional production volumes, pricing dynamics, and costs incurred. The arrangement permits BP to register a share of production and reserves proportional to its remuneration for boosting production levels.
This development is expected to stimulate economic activity in the Kirkuk zone by enhancing local supply chains and creating job opportunities. Operational activities are projected to begin in 2025.
Historically, BP was part of the original consortium responsible for discovering oil in Kirkuk during the 1920s. Additionally, from 2013 to 2019, BP collaborated with Iraq’s Ministry of Oil and NOC to evaluate potential large-scale redevelopment opportunities within the region.
Auchincloss said: “BP has a decades-long history in Iraq, and we look forward to building on this as we embark on our next chapter of production in the country.
“From signing a memorandum of understanding last year to now fully completing our agreement, we’re looking forward to getting to work. Together with our partners, we aim to deliver world-class operations, combining deep local knowledge with our expertise in managing giant fields and safely executing major projects.”
