The Iraqi government has formalized a memorandum of understanding with Brech Petroleum/BP aimed at advancing the development of the Four Kirkuk oil fields. This agreement was signed during a ceremony held in London, attended by the Deputy Prime Minister and Minister of Oil, Hayyan Abdel-Ghani Al-Sawad.
The signing was executed by Amer Khalil Ahmed, the Iraqi director of the North Oil Company, and Zaid Al-Yasiri, the director of BP’s Iraq branch. The memorandum’s primary objective is to assess the feasibility of fully rehabilitating and developing the Four Kirkuk fields, with an emphasis on enhancing production levels and optimizing output of oil and gas resources.
In recent discussions, the Iraqi Ministry of Oil has reiterated its commitment to develop the oil fields situated in Kirkuk Governorate. This initiative is focusing on technical, economic, and contractual advancements through ongoing negotiations with BP.
According to the Minister of Oil, negotiations with BP are centered on the operational management of the Bay Hassan, Kirkuk, Jumbour, and Bed fields under the North Oil Company. These efforts aim to increase production in line with the government’s strategic plan, which includes maximizing the utilization of associated gas to support electrical energy generation.
Kirkuk is notable for housing Iraq’s most ancient oil field, which ranks as the second-largest in the world by production capacity. It stands as the fifth largest globally in size, with proven reserves exceeding 10 billion barrels of high-quality crude oil.
However, the Kurdistan Regional Government has raised concerns regarding what they perceive as unilateral actions by the federal government to assert control over oil and gas resources in Kirkuk and other disputed regions. They argue that such moves constitute a violation of the Iraqi constitution established in 2005.