Iraq Signs Agreement for Kirkuk Field Development
On February 25, 2025, Iraq formalized an agreement to rehabilitate and develop its four oil fields in Kirkuk, in collaboration with BP Petroleum, a British energy firm. This agreement was signed in Baghdad under the auspices of Prime Minister Mohammed Shia Al-Sudani.
According to a statement from the Prime Minister’s office, the agreement was executed between the North Oil Company, a subsidiary of the Ministry of Oil, and BP Petroleum. The signing is a culmination of prior negotiations regarding technical aspects and contractual terms, which followed a memorandum of understanding reached during Prime Minister Al-Sudani’s recent visit to the UK. The framework aims to secure favorable conditions for Iraq, facilitating optimal investment in energy infrastructure, thereby boosting crude oil supplies to northern refineries and diminishing reliance on southern oil streams.
The signed agreement specifically targets the development of the primary Kirkuk oil fields: Bay Hassan, Kirkuk (encompassing the Baba and Afana regions), Jumbour, and Baks. Key objectives include the investment and operational enhancement of associated gas resources, the upgrading and expansion of gas facilities managed by the North Gas Company, and the establishment of a 400 MW power station integral to this comprehensive strategic initiative.
From an economic standpoint, this project is anticipated to generate a significant number of jobs across various specialties, stimulate the involvement of local companies, and facilitate the execution of social benefit initiatives. Furthermore, it aims to elevate engineering and technical competencies aligned with training programs facilitated by BP Petroleum in coordination with the Ministry of Oil.
This concerted effort marks a pivotal step in advancing Iraq’s energy sector while supporting local economic development and the skill enhancement of its workforce.
