Developments in Kirkuk Oil Production Amid Anticipated BP Investments
The Northern Oil Company has reported that production is currently underway in 35 wells across the Jambour oil field located in Kirkuk. This development occurs as the company awaits further collaboration with British Petroleum (BP) following the completion of a significant agreement with Iraq’s Ministry of Oil.
Progress in Production Operations
According to sources within the Northern Oil Company, General Manager Amer Khalil Ahmed recently convened with technical and engineering teams at Sarlo and Serbchach stations, integral parts of Kirkuk’s oil infrastructure. The meeting focused on evaluating production activities within the wells and strategizing on enhancing output rates. Notably, the development of these stations has been achieved through the expertise and efforts of Iraqi oil professionals.
The technical teams undertook a revitalization initiative for previously inactive wells, successfully reactivating 17 wells in the Bay Hassan field, seven in Hakkakuk, and one in the Jambour area. Additionally, well Kirkuk (361) has been brought back into production, along with well Kirkuk (344) from the Sirbchach region, with further evaluations conducted on additional wells in the vicinity.
Future Plans and Current Production Rates
In the upcoming week, the Northern Oil Company plans to focus on wells located in Kirkuk (234, 329, 328, 327, 341) in the Sarlo and Serbchach regions, along with the Bay Hassan well and Kirkuk Bir (257) in the Shoru area. Current production levels are approximately 330,000 barrels per day, primarily allocated for refining while maintaining an export rate of around 10,000 barrels daily to Jordan.
Major Investments on the Horizon
Recent reports indicate that BP is poised to invest between $20 billion and $25 billion in a comprehensive project aimed at redeveloping four oil and gas fields in Kirkuk. Such investments align with the Iraqi government’s ongoing efforts to attract foreign capital. An Iraqi oil official highlighted that if the anticipated agreement is finalized within the next few weeks, it would significantly enhance Iraq’s oil production capacity, addressing the limitations imposed by historical challenges such as conflict and corruption.
This potential agreement marks a pivotal moment for Iraq, which remains the second-largest oil producer in OPEC, trailing only Saudi Arabia. Furthermore, the investment promises to foster advancements in energy infrastructure aimed at meeting local energy needs.
Agreement Terms and Historical Context
The proposed contract would not only raise oil production from the four targeted fields by 150,000 barrels per day but also aim to reach a total production capacity of at least 450,000 barrels per day within two to three years. This agreement, once finalized, will represent BP’s increased engagement following its previous collaborative endeavors in the Kirkuk region, including a 2013 Letter of Intent to evaluate the development of these fields, which was halted due to security issues in 2014.
Since the stabilization of the region post-ISIS and the regaining of control by the Iraqi government in 2017, BP has resumed its assessments in Kirkuk, although previous attempts to expand its operations met with challenges. The renewed talks and positive progress suggest that the final contracts could be signed imminently, possibly by the end of this week.
Overall, the emerging investment landscape, coupled with ongoing production enhancements, positions Iraq as a potentially revitalized player in the global oil market.
