Iraqi Oil Ministry Signs Contract with BP for Kirkuk Oil Fields Development
The Iraqi Oil Ministry has formalized a contract with British Petroleum (BP) to enhance the development of Kirkuk’s oil fields and expand operations at the Northern Gas facilities. This initiative is poised to bolster the federal budget’s financial resources and increase investments in the gas sector, which is essential for supporting the electricity infrastructure.
On Monday, the Oil Ministry announced the signing of a comprehensive agreement focused on the development of four critical oil fields in Kirkuk: Bavagurgur, Avana, Jambur, and Khabaz. Iraqi Oil Minister Hayan Abdul Ghani emphasized the significance of this contract during the signing ceremony, highlighting its potential to positively influence the state’s oil and gas resource portfolio.
Minister Abdul Ghani stated, “The execution of this contract marks a substantial achievement for the Northern Oil Company. The initiatives will not only amplify national production but also boost gas investments to enhance electricity generation capabilities.”
The agreement with BP also encompasses plans for the renovation and expansion of gas facilities managed by the Northern Gas Company, reflecting a comprehensive approach to optimizing gas production alongside oil extraction. The Kirkuk oil fields, including Bay Hassan, Avana, Bawgurgur, Jambur, and Khabaza, are currently operated by the Iraqi Oil Ministry’s Northern Oil Company.
Furthermore, Iraqi Prime Minister Mohammed Shia Sudani, along with a delegation, arrived in London on Tuesday, where he was received by British Prime Minister Keir Starmer.
On August 1, 2024, Prime Minister Sudani presided over the signing of a detailed memorandum of understanding between the Iraqi Ministry of Oil and BP to advance the development of the Kirkuk oil and gas fields. This memorandum was signed by Minister Abdul Ghani and BP’s Chief Executive, Murray O’Shaughnessy.
BP has a long-standing presence in Kirkuk, dating back to 1920, and estimates that the region harbors approximately 9 billion barrels of oil reserves.
