bp has reached a final agreement with the Iraqi government to redevelop several major oil fields in Kirkuk.
The project, which includes oil, gas, power, and water components, is awaiting final governmental ratification.
The agreement follows a memorandum of understanding signed in July 2024 and builds on bp’s previous work in Kirkuk from 2013 to 2019.
The initial phase targets production exceeding three billion barrels of oil equivalent, focusing on the Baba and Avanah domes of the Kirkuk field, along with adjacent fields.
bp will collaborate with the North Oil Company (NOC) and North Gas Company (NGC) to establish a new operator, primarily staffed by NOC and NGC personnel with support from bp.
The project aims to stabilise and increase production through drilling, well rehabilitation, and new infrastructure, including gas expansion projects.
William Lin, bp’s executive vice president, said: “This agreement builds on our longstanding and strategic relationship with the Government of Iraq and delivers access to a material new resource opportunity, within one of the world’s most prolific hydrocarbon provinces.
“It will enable us to bring our experience of managing giant fields to realise the potential of this important asset for Iraq, working alongside and in close partnership with NOC and NGC.
“This opportunity is fully in line with our priority of pursuing new growth opportunities for bp as we strengthen and high-grade our portfolio across the world.”
bp’s remuneration will be tied to incremental production volumes, price, and costs, allowing the company to book a share of production and reserves proportionate to its earnings.
The investment fits within bp’s disciplined financial framework and meets its investment return thresholds.
