BP, a leading energy provider, has declared its partnership with Iraq’s government to revamp four significant oil and gas fields in the northern region of Kirkuk. This collaboration, which adheres to a memorandum of understanding established in July 2024 and subsequent agreements in December and January, marks a new phase in the development of these fields, building on BP’s previous efforts from 2013 to 2019.
The deal, projected to be worth $25 billion (€23.8bn) throughout the project’s duration, reflects a significant shift in BP’s strategy. Instead of adhering to previous commitments to reduce oil and gas production by 2030, BP is now steering towards increasing production. This step is also a notable milestone for Iraq, which has faced challenges in its oil output due to the effects of years of conflict, sectarian disputes, and corruption.
BP estimates that the initial phase of the agreement will involve the production of over three billion barrels of oil equivalent, encompassing the Baba and Avanah domes of the Kirkuk oil field and three adjacent fields: Bai Hassan, Jambur, and Khabbaz. The broader potential across the contract area and its surroundings is believed to hold up to 20 billion barrels of oil equivalent.
William Lin, BP’s executive vice president, commented on the agreement as a significant expansion of their strategic relationship with Iraq, providing access to substantial new resources. He emphasized that this deal aligns with BP’s focus on identifying growth opportunities and leveraging their expertise in managing major fields to unlock the asset’s potential for Iraq.
This strategic realignment marks a departure from the green initiative strategy previously advocated by BP’s former CEO, Bernard Looney. The company’s new CEO, Murray Auchincloss, announced a strategic overhaul in London, prioritizing investment in high-return sectors and enhancing operational efficiency and cost management. This pivot aims to ensure sustained growth in cash flow and returns, signaling a significant adjustment in BP’s approach to its business and sustainability goals.
Source: https://www.euronews.com/business/2025/02/26/bp-unveils-multi-billion-dollar-deal-to-redevelop-iraqs-oil-fields
