Iraq and BP Ignite Kirkuk Oilfields with Ambitious Expansion Plan

Iraq has activated a contract with BP to advance the Kirkuk oilfields with an initial target of 328,000 barrels per day. This agreement includes BP collaborating with Iraq's state-run North Oil and Gas Companies for development. BP may invest up to $25 billion in the project's lifetime.

Iraq has officially commenced a contract with BP aimed at developing the Kirkuk oilfields, with an initial production target of 328,000 barrels per day, as announced by the country's oil minister on Thursday.

The contract, originally signed earlier this year, involves a collaboration between BP and Iraq's state-operated North Oil Company (NOC) and North Gas Company (NGC). They aim to revitalize and enhance production at the Baba and Avana domes of the Kirkuk field, along with the Jambour, Bai Hassan, and Khabbaz fields. According to Iraq's oil minister, Hayan Abdel-Ghani, further production increases are anticipated through continued field development.

Initial production rates set at 328,000 barrels per day kickstart the contract, with further increments expected from subsequent development operations, a senior Iraqi oil official revealed. BP is potentially investing up to $25 billion throughout the project. Historically, BP was among the early oil discoverers in Kirkuk during the 1920s, and the company estimates that the field contains around 9 billion barrels of recoverable oil.

(With inputs from agencies.)