Peregraf
British Petroleum (BP) is aiming to finalize a deal to redevelop Iraq's massive Kirkuk oil field within the coming months, as the company shifts its focus back to the Middle East, CEO Murray Auchincloss announced on Monday.
The potential agreement follows the signing of a memorandum of understanding (MOU) between BP and Iraq's Oil Minister Hayan Abd al-Ghani in August. The MOU outlines plans for an integrated redevelopment of the Kirkuk field, a mature but resource-rich site, along with adjacent fields. Currently producing around 250,000 barrels of oil per day, the fields represent an opportunity for significant expansion in gas, solar, and exploration activities.
"We're very excited about that opportunity," said Auchincloss, expressing optimism about reaching a formal agreement by February. "It's five domes, 20 billion barrels [of oil] yet to produce, very competitive terms internationally now, and a government that's willing to work with [us] in a much-stabilized security situation as well."
The move could signal a broader return to Middle Eastern operations for BP, which already leads operations at the Rumaila oil field in Basrah, producing approximately one-third of Iraq's crude oil output.
Meanwhile, there is growing hope that Kirkuk oil exports to global markets via Turkey could resume at the start of the new year. These exports have been suspended since March 2023 following an International Court of Arbitration ruling in favor of Iraq in a dispute with Turkey over oil transport agreements.
Iraq has experienced relative political stability over the past two years, providing a favorable environment for foreign investment. If finalized, BP's involvement in Kirkuk could significantly enhance Iraq's oil output and energy infrastructure.