Iraq and BP Forge Strategic Partnership for Kirkuk Oil Fields Development
Under the guidance of Prime Minister Mohammed Shia Sudani, the government of Iraq has entered into a significant agreement with British Petroleum (BP) aimed at the rehabilitation and advancement of four key oil fields in Kirkuk.
Agreement Overview
The official signing of this agreement took place on February 25, 2025, and involved the Northern Oil Company, a division of Iraq’s Ministry of Oil, alongside BP representatives. This collaboration follows extensive discussions regarding technical specifications and contractual terms, originating from memorandums of understanding signed in London during the Prime Minister’s recent visit to the United Kingdom.
Project Scope
The agreement encompasses the development of four major fields in the Kirkuk region—Bay Hassan, Bawagurgur, Avana, Jambur, and Khabaza. A notable aspect of this initiative is its emphasis on integrating gas investments and enhancing gas facility infrastructure. Currently, these fields are under the operation of Northern Oil Company.
This development project is anticipated to generate diverse employment opportunities while fostering local business operations, community benefit initiatives, and advancements in engineering and technical resources, thereby supporting staff at both the Northern Oil Company and Northern Gas initiatives.
Significance and Strategic Implications
A ceremony commemorating this partnership was held on the evening of January 14, 2025, marking a milestone in the efforts to fully realize the potential of the Kirkuk oil fields. According to a statement from the Iraqi Prime Minister’s office, BP will oversee the rehabilitation and enhancement of production capabilities within the Northern Oil Company to optimize oil and gas output.
Iraq’s Oil Minister, Hayan Abdul Ghani, was present at the signing, along with key officials including Amer Khalil Ahmad, General Director of the Northern Oil Company, and Zayed Yasri, director of BP’s Iraqi branch. Minister Abdul Ghani underscored the scale of this agreement, noting that it surpasses BP’s prior $27 billion deal with Total Energy, which was established in Basra.
Historical Context
The relationship between BP and the Kirkuk region is longstanding, dating back to 1920, with BP estimating that the area possesses approximately 9 billion barrels of oil reserves. Earlier, on August 1, 2024, an overarching memorandum for oil development was formalized between Iraq’s Ministry of Oil and BP, further solidifying this collaborative trajectory toward optimizing the Kirkuk oil and gas fields.
This strategic partnership aims not only to bolster Iraq’s oil production capabilities but also to enhance its position in the global energy market by leveraging BP’s extensive experience and technical expertise.
