BP Expands Investment in Iraq’s Kirkuk Oil Fields

BP has finalised an agreement with the Iraqi government to invest in the redevelopment of Kirkuk’s giant oil fields, focusing on oil, gas, power, and water infrastructure. The deal, pending final approval by Iraq’s Council of Ministers, includes plans for a new operating entity comprising personnel from the North Oil Company (NOC), North Gas Company (NGC), and BP secondees.

This agreement builds on BP’s previous work in Kirkuk (2013–2019) and a memorandum of understanding signed in July 2024. The initial phase targets more than three billion barrels of oil equivalent across the Baba and Avanah domes and three adjacent fields—Bai Hassan, Jambur, and Khabbaz. The broader resource potential in the region is estimated at up to 20 billion barrels.

BP’s executive vice president, William Lin, highlighted the deal’s significance:

“This agreement strengthens our strategic relationship with Iraq and delivers access to a major resource opportunity. By applying our expertise in managing giant fields, we aim to unlock the full potential of Kirkuk.”

BP will oversee drilling programmes, rehabilitate existing wells, and develop new infrastructure, including gas expansion projects. Its remuneration will be tied to production increases, oil prices, and project costs, allowing BP to book a share of production and reserves.

Beyond boosting Iraq’s oil sector, the project is expected to drive economic growth in Kirkuk through job creation and supply chain development. Scheduled to begin in 2025, this investment reinforces BP’s long-term partnership with Iraq in one of the world’s most prolific hydrocarbon regions.

Source: BP