BP and the Iraqi government have reached a preliminary agreement on the technical terms for redeveloping the Kirkuk oil and gas fields, which are believed to still contain billions of barrels of recoverable oil.
The deal marks a significant step toward a full contract, according to William Lin, BP’s Executive Vice President. Lin made the announcement Thursday, noting that both BP and Iraq are aiming to finalize negotiations by early next year.
“We are grateful to the Iraqi government for its ongoing support of BP’s activities, especially in Rumaila, and for their commitment to advancing discussions on the future development of the Kirkuk fields,” Lin said.
Earlier this year, BP and Iraq agreed to rehabilitate and expand four oil and gas fields in the Kirkuk region. BP’s August 2024 statement explained that the plan includes upgrading existing facilities, building new infrastructure—including gas expansion projects—and launching a new drilling program. These efforts are expected to stabilize production and reverse its decline, ultimately bringing the Kirkuk fields back to a growth trajectory.
Iraq, the second-largest oil producer in OPEC, considers Kirkuk a cornerstone of its oil industry. BP has a long history in Iraq, dating back to the 1920s, when the company helped Iraq discover, produce, and export oil from the Baba Gurgur field in Kirkuk.
The Kirkuk oil field is estimated to still contain around 9 billion barrels of recoverable oil. However, oil operations in the region have faced challenges in recent years due to disputes between Iraq’s central government and the Kurdish regional government over control of the fields and revenue sharing.
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