Energy company bp reaches agreement with Iraqi government for oil field investments in Kirkuk

In a statement made by BP, it was stated that all contract terms were agreed with the Iraqi government for investment in the oil fields in Kirkuk .

The agreement covers the necessary processes for the rehabilitation and redevelopment of the fields, the statement said, adding, "The agreement is subject to government approval. Following the approval of the agreement by the Council of Ministers, we will work closely with the government to establish the new operator, which will be an unincorporated entity consisting mainly of personnel from the North Oil Company (NOC) and the North Gas Company, but with auxiliary personnel from BP. The new operating organization will take over operations in Kirkuk from the NOC. Following this agreement, BP plans to establish an independent joint-stock joint venture to retain its shares in the operator."

The statement noted that the agreement was completed within the framework of the memorandum of understanding signed between BP and the Iraqi government in July 2024, with technical terms agreed in December 2024 and the majority of commercial terms agreed last month, as well as BP's previous work in the Kirkuk fields between 2013 and 2019.

It was stated in the statement that the agreement covers the first phase, which includes the production of oil and gas equivalent to over 3 billion barrels of oil, and that the production opportunity includes the potential of 20 billion barrels of oil equivalent.

The company estimates the project will begin this year.