March 27, 2025 [Storage Terminals Magazine]- Bp has received final government ratification for its contract to invest in the redevelopment of several major oil fields in Kirkuk, located in northern Iraq.
The agreement, signed between North Oil Company, North Gas Company, and bp, encompasses the rehabilitation and redevelopment of the fields, covering oil, gas, power, and water, with potential investment in exploration.
The final contract was formalised during a meeting in Baghdad with Iraq’s prime minister, H.E. Mohammed Shia’ Al Sudani, deputy prime minister for Energy Affairs and Minister of Oil, H.E. Hayan Abdul Ghani, and bp’s chief executive officer, Murray Auchincloss. Also present were Nader Zaki, bp regional president for the Middle East and North Africa, and Zaid Elyaseri, bp president Iraq.
“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,” said Murray Auchincloss. “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.”
With the agreement now fully approved, bp will collaborate with the Iraqi government to establish a new operator—an unincorporated entity consisting mainly of personnel from NOC and NGC, alongside secondees from bp. This organisation will oversee the initial stages of field development.
The initial phase of the agreement focuses on oil and gas production exceeding 3 billion barrels of oil equivalent, covering the Baba and Avanah domes of the Kirkuk oil field, as well as three adjacent fields in Federal Iraq—Bai Hassan, Jambur, and Khabbaz—which are currently operated by NOC. The broader resource potential across the contract area is estimated to include up to 20 billion barrels of oil equivalent.
This milestone reinforces bp’s long-term commitment to Iraq and aligns with its strategy to strengthen its upstream portfolio, leveraging its expertise in managing large-scale oil and gas operations.
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