Iraq’s Oil Ministry signed a landmark agreement on Monday with British energy giant BP to develop four key oil fields in Kirkuk.
“The Oil Ministry has officially signed the contract to develop the four Kirkuk fields with BP,” the ministry stated, noting that the agreement was executed through the state-run North Oil Company (NOC) and North Gas Company (NGC).
NOC and NGC oversee the exploration, production, and management of oil and gas resources in the Kurdistan Region and surrounding areas. The fields covered under the contract include Baba Avana, Bay Hasan, Jambour, and Khabbaz.
Iraq’s Oil Minister Hayyan Abdul Ghani emphasized the ministry’s commitment to maximizing the country’s oil and gas resources, stating that the deal will contribute significantly to strengthening Iraq’s financial position and boosting the federal budget.
The agreement follows a memorandum of understanding (MoU) signed in January between Iraq’s Prime Minister Mohammed Shia’ al-Sudani and BP during an official visit to London. A month later, Baghdad and BP finalized a deal addressing technical and contractual terms, including the project’s economic model, based on the MoU.
Abdul Ghani explained that the development and rehabilitation of these oil fields would enhance national production and optimize gas utilization for electricity generation.
This development comes as Iraq seeks to increase domestic energy output following the United States’ decision to revoke a key waiver that previously allowed Baghdad to import energy from Iran. In response, the Iraqi government is exploring alternative energy sources, including expanding domestic production and forging partnerships with Gulf nations. The BP deal is seen as a crucial step toward energy self-sufficiency and reducing reliance on imports.