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By John Lee.

ConocoPhillips has agreed to acquire a 42% interest in BP Energy Company of Kirkuk Limited (BP ECKL) from BP, supporting the redevelopment of four producing oil fields in the Kirkuk area of northern Iraq. The agreement is expected to be signed during Prime Minister Ali al-Zaidi's official visit to Washington, D.C.

BP ECKL holds the Development and Production Contract (DPC) covering the Baba and Avanah domes of the Kirkuk oil field and three adjacent fields in federal Iraq: the Bai Hassan oil field, Jambur and Khabbaz. The DPC covers an initial gross recoverable resource of more than 3 billion barrels of oil equivalent, to be recovered through field rehabilitation, redevelopment and optimisation activities. The contract area also includes additional exploration potential.

The transaction is expected to close by the end of 2026, subject to regulatory approvals, with an effective date of 1 July 2026. Upon closing, the BP ECKL joint venture will be accounted for as an equity affiliate and is not expected to require significant capital contributions from ConocoPhillips, with remuneration linked to a proportionate share of incremental production and costs.

Ryan Lance, chairman and chief executive officer of ConocoPhillips, said:

"This unique redevelopment opportunity is well aligned with our disciplined investment framework, providing access to a material, high-quality and long-life resource base, comfortably meeting our cost of supply threshold

"Consistent with our focus on capital discipline, we see an opportunity to create value through a capital-efficient redevelopment program that leverages a large existing production base, while also offering meaningful exploration upside.

"We look forward to working with bp and the Government of Iraq to support the continued redevelopment of these historically significant fields in an important energy-producing region."

BP Chief executive officer Meg O'Neill said:

"Kirkuk is a world-class resource base that can support Iraq's long-term energy ambitions while creating value for both the country and bp.

"This partnership with ConocoPhillips brings together two great teams and positions us well for the next phase of redevelopment.

"We're being deliberate about where we invest, backing high-quality resources that can deliver long-term value for our shareholders."

(Sources: ConocoPhillips / BP)

By John Lee.

Progress on the Kirkuk oil field development project has been reviewed during a meeting of the joint management committee overseeing the initiative.

The meeting, chaired by Deputy Oil Minister for Upstream Affairs Bassem Mohammed Khudhair, covered ongoing work on the project, which is being implemented by BP.

The development, considered a major strategic project, aims to increase oil and gas production capacity while improving resource utilisation.

Discussions focused on four key fields in Kirkuk province:

• Bai Hassan
• Jambur
• Kirkuk
• Khabbaz

The committee approved the operational management structure and took decisions related to the project's budget and safety measures. Emphasis was also placed on increasing associated gas production and reducing flaring in line with environmental standards.

The project involves cooperation between North Oil Company (NOC) and North Gas Company (NGC), alongside BP, with participation from technical and legal departments within the Ministry of Oil.

Officials stated that the initiative is expected to accelerate development across the targeted fields, create employment opportunities in Kirkuk, and support local economic activity.

The Ministry also highlighted plans to strengthen national workforce capabilities through training programmes and international study initiatives aimed at transferring technical expertise.

(Source: Ministry of Oil)

By John Lee.

Oil Minister Hayan Abdul Ghani has overseen the activation of a major development contract for four Kirkuk oilfields and the rehabilitation of gas facilities. The agreement was signed between North Oil Company (NOC), North Gas Company (NGC), and BP.

The contract covers the Kirkuk (Baba and Avana domes), Jambur, Bai Hassan, and Khabbaz fields, alongside upgrades to North Gas Company installations. Initial production has been set at 328,000 barrels per day, with further increases expected through phased development.

Minister Abdul Ghani highlighted the project's role in boosting crude output, increasing associated gas utilisation, supplying power generation plants, and creating jobs in Kirkuk and neighbouring provinces.

BP's Iraq Country Manager, Zaid Elyaseri, described the activation as a key step in strengthening cooperation with the Iraqi companies to enhance oil and gas production. North Oil Company Director Amer Khalil and North Gas Company Director Ahmed Abdul Majid both underlined the economic and industrial benefits of the project.

(Source: Ministry of Oil)

By John Lee.

Iraq's Prime Minister, Mohammed S. Al-Sudani, oversaw the signing of a major agreement between the Iraqi Ministry of Oil and BP for the development and production of four key oil fields in Kirkuk. The contract covers the Kirkuk field (Baba and Avana domes), Bai Hassan, Jambur, and Khabbaz.

The signing ceremony on Wednesday was attended by Oil Minister Hayan Abdul Ghani and BP's Chief Executive Officer, Murray Auchincloss.

The agreement includes a comprehensive rehabilitation plan aimed at increasing crude oil production to 420,000 barrels per day and utilizing associated gas through the North Gas Company (NGC) to produce 400 million standard cubic feet per day. Additionally, a 400-megawatt power plant will be constructed to support Iraq's electricity needs.

This initiative is expected to curb gas flaring, improve energy sustainability, and create job opportunities in the energy sector.

(Source: PMO)

By John Lee.

Iraq's Ministry of Oil has signed an initial agreement with BP to develop four oilfields in Kirkuk.

The agreement, signed by North Oil Company (NOC) and North Gas Company (NGC), covers the development of the Avana and Baba domes of Kirkuk, Bai Hassan, Khabbaz, and Jambur fields.

Minister of Oil Hayan Abdul Ghani highlighted the importance of this deal in enhancing state revenues and increasing national oil and gas output. He noted that after a period of stagnation, the project would contribute to higher oil production and greater gas utilisation, particularly for electricity generation.

Senior officials from the Ministry of Oil, including deputies for extraction, gas, and refining, as well as directors from Basra Oil Company (BOC), Midland Oil Company (MdOC), and North Gas Company, attended the signing ceremony.

The contract also includes rehabilitation and expansion of gas facilities at North Gas Company, further supporting Iraq's energy sector development.

(Source: Ministry of Oil)

By John Lee.

BP has reached a contractual agreement with the Government of Iraq to invest in the rehabilitation and redevelopment of several giant oil fields in Kirkuk.

The agreement, signed in Baghdad on Tuesday under the patronage of Prime Minister Mohammed Shia Al-Sudani, encompasses oil, gas, power and water development, with potential for future exploration investment.

The agreement covers four main fields in Federal Iraq -- the Baba and Avanah domes of the Kirkuk oil field, along with Bai Hassan, Jambur and Khabbaz -- all currently operated by the North Oil Company (NOC). The initial phase includes oil and gas production exceeding three billion barrels of oil equivalent, while the wider resource opportunity across the contract area is believed to include up to 20 billion barrels of oil equivalent.

William Lin, executive vice president at BP, 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.

"We thank the Government of Iraq for the trust and privilege to deepen our cooperation in-country."

The agreement follows a memorandum of understanding signed in July 2024, with technical terms agreed in December and most commercial terms finalised in January. It also builds upon BP's previous work on the Kirkuk fields from 2013 to 2019. The company was originally part of the consortium that discovered oil in Kirkuk in the 1920s.

Upon endorsement by the Iraqi Council of Ministers, BP will work with the government to establish a new operator-an unincorporated organisation comprising primarily personnel from the North Oil Company and North Gas Company (NGC), with BP secondees. BP subsequently expects to form a standalone incorporated joint venture to hold its interests in the operator.

Under the terms of the agreement, BP's work will include a drilling programme, rehabilitation of existing wells and facilities, and construction of new infrastructure, including gas expansion projects. The agreement also covers the development of associated gas and the rehabilitation and expansion of North Gas Company facilities, as well as the construction of a 400-megawatt power station.

BP's remuneration will be linked to incremental production volumes, price and costs, allowing the company to book a share of production and reserves proportionate to the fees earned for helping increase production. The project is expected to commence in 2025 and meets BP's investment returns criteria.

The development aims to provide significant economic benefits to the Kirkuk region, including job creation across various specialisations, engagement of local companies, implementation of social benefit projects, and skills development for engineering and technical personnel from the North Oil Company and North Gas Company.

(Sources: BP, Iraqi Ministry of Oil)

By John Lee.

A memorandum of understanding (MoU) was signed in London to explore the comprehensive redevelopment of four oil fields in Kirkuk.

The agreement was formalised by Amer Khalil Ahmed, Director General of the North Oil Company (NOC), and Zaid Al-Yasiri, BP's Iraq Branch Manager, in the presence of Deputy Prime Minister and Minister of Oil Hayan Abdul Ghani Al-Sawad.

The MoU assigns BP the responsibility for evaluating the rehabilitation and development of these fields, operated by the North Oil Company. The initiative aims to enhance production and achieve targeted output rates for oil and gas, bolstering Iraq's energy sector.

Iraq Business News understands that the fields involved are Bai Hassan, Kirkuk (Baba and Avana domes), Jambur [Jambour], and Khabbaz.

(Source: PMO)

By John Lee.

In a statement from the Ministry, Iraq's Minister of Oil, Hayan Abdul Ghani, noted ongoing negotiations with BP to finalise technical, economic, and contractual aspects of the Kirkuk oilfield development.

Senior officials from the Ministry, the North Oil Company (NOC), and BP, including the head of BP Iraq, participated in the talks.

The Minister emphasised the Ministry's commitment to developing oilfields under North Oil Company to boost production and gas utilisation for energy and industry.

During a meeting, discussions focused on advancing negotiations with BP to enhance operations at four key fields: Bai Hassan, Kirkuk (Baba and Avana domes), Jambur [Jambour], and Khabbaz.

Last month, BP signed a preliminary letter of technical alignment with Iraq regarding the Kirkuk fields.

(Source: Ministry of Oil)

By John Lee.

UK-based oil major BP has said that negotiations regarding an integrated redevelopment programme for the Kirkuk region are expected to be complete early in 2025.

The non-binding agreement, signed on Thursday, involves the rehabilitation and development of four oil fields in Kirkuk.

It also proposes to explore opportunities for investment in power generation, including solar power facilities.

BP was a member of the consortium of oil companies that discovered oil in Kirkuk in the 1920s.

Full press release from BP:

bp has signed a memorandum of understanding (MoU) with the Government of the Republic of Iraq to negotiate a material integrated redevelopment programme for the Kirkuk region, spanning oil and gas investment, power generation and solar, together with wider exploration activities.

The non-binding MoU was signed in a meeting between Iraq Prime Minister H.E. Mohammed Shia' Al Sudani, H.E. Hayan Abdul Ghani, Deputy PM for Energy Affairs and Minister of Oil, and bp chief executive Murray Auchincloss, together with Nader Zaki, bp regional president for Middle East and North Africa, and Zaid Elyaseri, bp President Iraq.

Murray Auchincloss said:

"This MoU builds on bp's strategic and longstanding relationship with Iraq. We see today's signing as an important step towards the potential further development of this critically important area. It aligns with bp's six clear priorities and is in support of our drive to deliver as a simpler, more focused, higher value company"

The MoU signed today for Kirkuk includes the Baba and Avanah domes and three adjacent fields - Bai Hassan, Jambur and Khabbaz - in Federal Iraq, that are operated by the Government of Iraq's North Oil Company (NOC).

Rehabilitation of existing facilities, where required, and the construction of new facilities - including gas expansion projects - together with a drilling programme at the Kirkuk fields, has the potential to stabilize production and reverse decline, returning production from this nationally important oilfield to a growth path.

The integrated redevelopment programme has the potential to bring opportunity and investment into the Kirkuk region - unlocking future downstream growth while also bringing tangible benefits to the local population, with job creation and local supply requirements.

As part of today's MoU, bp also proposes to explore opportunities for investment into power generation and the introduction of solar power facilities to the region.

Negotiations are expected to be complete early in 2025.

(Source: BP)

By John Lee.

Iraqi Prime Minister Mohammed Shia' Al Sudani oversaw the signing of a comprehensive memorandum of understanding between Iraq's Ministry of Oil and BP to rehabilitate and develop four oil fields in Kirkuk.

The Minister of Oil, Hayan Abdul Ghani, and BP's CEO, Murray Auchincloss, signed the agreement.

The memorandum includes the rehabilitation and development of the four fields of the North Oil Company (NOC) in Kirkuk, namely the Kirkuk field with its two domes (Baba and Avana), as well as the Bai Hassan, Jambur, and Khabbaz fields, with potential expansion to other exploratory fields.

According to the Ministry, this initiative is part of the government's efforts to optimize energy opportunities, including solar energy investments in the region.

(Source: Ministry of Oil)