BP Inks Landmark Deal with Iraq for Kirkuk Oil Revitalization

Iraq and BP are set to sign a significant agreement for the development of Kirkuk oil and gas fields, aiming to increase oil production by 150,000 bpd under a new profit-sharing model. The deal, larger than a previous substantial contract, seeks to boost gas production and reduce flaring by 2028.


Devdiscourse News Desk | Updated: 15-01-2025 14:58 IST | Created: 15-01-2025 14:58 IST
BP Inks Landmark Deal with Iraq for Kirkuk Oil Revitalization
This image is AI-generated and does not depict any real-life event or location. It is a fictional representation created for illustrative purposes only.

Iraq and British oil behemoth BP are on the brink of signing a transformative deal expected to revitalize four oil and gas fields in Kirkuk by early February, according to oil minister Hayan Abdel-Ghani during his visit to the UK. This contract is anticipated to surpass the 2023 TotalEnergies deal in Basra, which was valued at approximately $27 billion.

A preliminary agreement was noted by Iraq's state news agency, aiming to reassess the redevelopment of Kirkuk and adjacent fields. The deal promises to significantly enhance oil production, upping it by 150,000 barrels per day and includes important gas components. Abdel-Ghani highlighted ambitions to mitigate wasteful flaring practices by 2028.

The historic contract is expected to differ from its predecessors by offering more attractive profit-sharing terms to foreign companies like BP, which holds a long-standing stake in Iraq. The Kirkuk fields, with an estimated 9 billion barrels of recoverable oil, may see rejuvenated activity in the coming years, reflecting Iraq's ongoing efforts to maximize its oil output.

(With inputs from agencies.)

Give Feedback