Iraq prepares to hand over Kirkuk oil fields to BP for development
Shafaq News/ North Oil Company (NOC) has begun preparing oil wells in Kirkuk Governorate to ramp up production levels ahead of handing over the fields to British energy giant BP for development, a company source said on Friday.
The source told Shafaq News Agency, “NOC has initiated a work plan to maximize production from the Kirkuk, Bai Hassan, Jambur, and Khabbaz fields before transferring them to BP, which has been contracted to enhance their output.”
The source added that the company's field division has been tasked with executing a drilling and rehabilitation plan this year, alongside well-activation activities without rigs. "The company aims to speed up the preparation of well sites, coordinating with the project division to complete each site within three weeks."
In addition, the company is laying pipelines and completing connections for wells Bai Hassan 198 and 199, with a target to finish within a month. “Five well valves in the Khabbaz oil field are being connected, and damaged pipelines at the Shoraw station in Baba Dome are being repaired as part of the company’s efforts to stabilize production levels in northwest Avana, according to projected plans for the Kirkuk oil field.”
The source noted that NOC is expected to complete all requirements for BP within three weeks to a month. A meeting with BP representatives is scheduled to finalize the next steps for implementing the agreement aimed at boosting NOC’s production capacity.
Economic expert Ali Khalil told Shafaq News Agency, “The contract between the Iraqi government, through the Ministry of Oil, and BP must ensure that the British company delivers tangible results in terms of increased production within a specific timeframe.”
Khalil pointed out that BP had a prior contract with NOC, signed in 2013, valued at $100 million, which ended in January 2020. “The previous contract included 3D seismic studies of the reservoir, building on existing 2D data. Estimates suggest the Kirkuk field contains about nine billion barrels of recoverable oil,” he added.
On August 1, Prime Minister Mohammed Shia Al-Sudani oversaw the signing of a comprehensive oil memorandum of understanding between Iraq’s Ministry of Oil and BP to develop the Kirkuk fields for oil and gas production. Iraqi Deputy Prime Minister and Oil Minister Hayan Abdul-Ghani signed the agreement, while BP’s CEO Murray Auchincloss represented the British company.
The memorandum covers the rehabilitation and development of four NOC fields in Kirkuk—Kirkuk (Baba and Avana Domes), Bai Hassan, Jambur, and Khabbaz. It also opens the door for potential agreements on other fields or exploration blocks, with both parties seeking to maximize energy opportunities in the region to boost oil output and invest in gas and solar energy projects.
