British energy major BP has reached an agreement with the Government of Iraq to negotiate a comprehensive redevelopment programme for the Kirkuk oilfield.
The memorandum of understanding (MOU) encompasses Kirkuk’s Baba and Avanah domes and three adjacent fields – Bai Hassan, Jambur and Khabbaz – in Federal Iraq, managed by the North Oil Company.
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The Kirkuk oilfield, discovered by a consortium including bp in the 1920s, was the subject of technical studies by bp from 2013 to 2019, assessing the potential for redevelopment.
The proposed redevelopment programme also includes the rehabilitation of existing infrastructure and the construction of new facilities such as gas expansion projects, coupled with a drilling initiative.
bp said it aims to stabilise production at the Kirkuk fields, reversing the decline and setting the stage for future growth.
The British energy company highlighted the programme’s potential to drive opportunity and investment in the Kirkuk region, spurring downstream growth and delivering benefits such as job creation and local supply chain development.
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By GlobalDataAdditionally, bp has proposed exploring investments in power generation and the introduction of solar power facilities to the region as part of the MOU.
The negotiations for this redevelopment plan are expected to conclude early in 2025.
bp CEO Murray Auchincloss said: “This MOU builds on bp’s strategic and long-standing relationship with Iraq. We see today’s signing as an important step towards the potential further development of this critically important area. It aligns with bp’s six clear priorities and is in support of our drive to deliver as a simpler, more focused, higher-value company.”
In separate news, bp has finalised the acquisition of GETEC ENERGIE, an energy supplier to commercial and industrial customers in Germany.
This move is expected to enhance bp’s gas and power presence in Europe and offer integrated lower-carbon energy solutions to customers not only in Germany but across other European nations including the Netherlands, Austria, Belgium and Poland.
