Iraq has taken a big step in reviving its oil and gas production by signing an agreement with BP to develop four fields in Kirkuk.
This deal aims to increase production capacity.
The agreement, which still requires final approval from the Iraqi government, will see BP invest up to $25 billion over the life of the project, according to Reuters.
The company will work alongside North Oil Co. (NOC), North Gas Co. (NGC), and a new operator to stabilize and boost crude output.
BP’s plan includes:
Drilling new wells
Rehabilitating existing infrastructure
Expanding gas production to meet Iraq’s energy needs
The goal is to increase crude output by 150,000 barrels per day (bpd), bringing total production from the four fields to at least 450,000 bpd within two to three years. BP’s earnings from the project will depend on increased production, price, and operational costs, allowing it to book a share of the output.
This move aligns with BP’s shift back to oil and gas investments, as the company prepares to scale down its renewable energy spending. The timing is notable, coming just before BP presents its new strategy to investors.
Kirkuk is a historic oil hub—BP was part of the original consortium that discovered its oil reserves in the 1920s. Today, the company estimates that Kirkuk holds 9 billion barrels of recoverable crude.
Beyond Kirkuk, BP also plays a key role in Iraq’s oil sector, holding a 50% stake in the Rumaila oil field, one of the world’s largest, where it has been operating for a century.
This deal represents a major push to boost Iraq’s energy production, ensuring both domestic supply and export growth.
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