BP and Iraq Finalize $25 Billion Agreement to Redevelop Kirkuk Oil Fields

On February 25, 2025, BP and the Government of Iraq finalized a landmark agreement to invest $25 billion in the redevelopment of four major oil and gas fields in the Kirkuk region. This initiative focuses on the Baba and Avanah domes of the Kirkuk oil field, along with the Bai Hassan, Jambur, and Khabbaz fields. The project aims to produce over 3 billion barrels of oil equivalent, with the potential to access up to 20 billion barrels in the broader area.

Under the terms of the agreement, BP's remuneration will be linked to incremental production volumes, prices, and costs, allowing the company to book a share of production and reserves proportionate to the fees earned for increasing production. A new operating entity will be established, comprising personnel from Iraq's North Oil Company (NOC), North Gas Company (NGC), and secondees from BP, to oversee the rehabilitation of existing wells and facilities, as well as the construction of new infrastructure, including gas expansion projects.

BP's Executive Vice President, William Lin, stated:

"This agreement builds on our longstanding and strategic relationship with the Government of Iraq and delivers access to a material new resource opportunity within one of the world’s most prolific hydrocarbon provinces."

The project aligns with Iraq's broader strategy to enhance domestic energy production and reduce gas flaring by 2028. It is expected to bring significant economic growth to the Kirkuk region, creating job opportunities and improving supply chain capabilities.