Iraq, BP sign deal to develop Kirkuk's oilfields
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ERBIL, Kurdistan Region - Iraq's oil ministry on Monday signed a landmark deal with British energy giant BP to develop four key oil fields in Kirkuk.
'The Oil Ministry put to ink the contract to develop the four Kirkuk fields with BP,' the ministry said in a statement, noting that the agreement was signed through the North Oil Company (NOC) and North Gas Companies (NGC).
The state-run NOC and NGC are responsible for the exploration, production, and management of oil and gas resources in the Kurdistan Region and surrounding areas.
The fields covered under the contract are Baba Avana, Bay Hasan, Jambour, and Khabbaz in Kirkuk.
The oil ministry cited Baghdad's Oil Minister Hayyan Abdul Ghani as emphasizing 'the ministry's keenness to maximize the state's oil and gas resources, which will positively contribute to maximizing the financial resources of the federal budget.'
In January, Iraq's Prime Minister Mohammed Shia' al-Sudani led a delegation on an official visit to London to sign a memorandum of understanding (MoU) with BP for the rehabilitation of these four oilfields in Kirkuk.
A month later, Baghdad finalized a deal with BP addressing 'technical issues and contractual terms, including the economic model of the project,' which was based on the MoU signed in London.
Abdul Ghani on Monday explained that the development and rehabilitation of the four oil fields will boost national production and enhance gas utilization to support electricity generation.
This latest development also follows Prime Minister Sudani's review of measures on Sunday, aimed at increasing Iraq's electricity production. The move came shortly after the United States rescinded a key waiver that allowed Iraq to import energy from Iran.
The Iraqi government is now seeking alternative energy sources, including domestic production and partnerships with Gulf countries. The BP deal is viewed as a critical step in efforts to increase national energy output and reduce dependence on imports.
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