Iraqi Oil Ministry signs deal with BP to develop oilfields in Kirkuk
Baghdad (IraqiNews.com) – The Iraqi Ministry of Oil said on Monday that a deal was signed with British Petroleum (BP) to develop four oilfields in the northern Iraqi province of Kirkuk.
The Iraqi Minister of Oil, Hayan Abdul-Ghani, said in a statement that the North Oil Company (NOC) and the North Gas Company had inked a deal with BP on Monday to develop the Kirkuk oilfields, the Iraqi News Agency (INA) reported.
Abdul-Ghani emphasized the ministry's commitment to maximizing the state's oil and gas resources, which will have a positive effect on optimizing the federal budget's financial resources.
The deal relies on the memoranda of understanding agreed upon during Al-Sudani's recent visit to the United Kingdom, which intended to secure the best contractual conditions and maximize advantages for Iraq.
The deal was reached following comprehensive negotiations with the Ministry of Oil to ensure the best use of energy resources, secure crude oil supply for Iraq's northern refineries, and minimize reliance on southern oil.
The deal involves the development of the Bai Hassan, Kirkuk, Jambur, and Khabbaz oil fields.
This comprehensive strategic project comprises the utilization of associated gas, the restoration and extension of gas infrastructure at North Gas Company, and the construction of a 400-megawatt power plant.
Besides increasing oil and gas production, the project will offer job opportunities in different domains, engage local businesses, and undertake social benefit initiatives.
Sources revealed in early February that BP might spend up to $25 billion over the course of the project, according to Reuters.
BP will contribute between $20 billion and $25 billion under a profit-sharing arrangement that would last more than 25 years, according to the source.
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