Iraq finalizes agreement with BP to develop Kirkuk oil fields

Shafaq News/ On Tuesday, the Iraqi government signed an agreement with British energy giant BP to develop and rehabilitate four major oil fields in Kirkuk, in the presence of Prime Minister Mohammed Shia Al-Sudani, marking the “final step” before the official contract is concluded.

A statement from the Prime Minister’s Office highlighted that the agreement follows a “series of negotiations on technical and contractual aspects, including the economic model of the project.”

These negotiations build on the Memorandums of Understanding (MoUs) signed in London during Al-Sudani’s recent visit to the UK, aimed at “securing the best contractual terms and maximizing benefits” for Iraq.

The statement further noted, “These agreements ensure the optimal utilization of energy resources, secure crude oil supplies for northern refineries, and reduce dependence on oil from the south.”

The agreement includes the development of four major oil fields in Kirkuk—Bai Hassan, Kirkuk (including the Baba and Avana domes), Jambur, and Khabbaz—as well as the utilization of associated gas, the rehabilitation and expansion of gas facilities at North Gas Company, and the construction of a 400-megawatt power plant, forming a “comprehensive strategic” project.

The statement highlighted that the project would “create job opportunities across various specializations, engage local companies, and implement social benefit initiatives.”