Iraq’s Oil Minister, Hayan Abdul-Ghani, announced that the agreement with British Petroleum (BP) to develop four oil fields in Kirkuk will significantly strengthen the country’s financial resources and energy production capacity.
During a meeting in Baghdad, Abdul-Ghani said the ongoing development of BP Iraq oil fields in northern Iraq is making steady progress. The Oil Ministry stated that the partnership reflects Iraq’s determination to modernize its oil infrastructure and increase output to meet growing domestic and export demands.
Earlier in October, the Oil Ministry officially activated a contract with BP to develop four oil fields and rehabilitate gas facilities in Kirkuk. The ceremony, supervised by Abdul-Ghani, marked the start of a long-term collaboration between BP, Iraq’s North Oil Company (NOC), and North Gas Company (NGC).
BP engineers arrived in Kirkuk in early September to assess the condition of the fields and associated facilities. These evaluations will guide a comprehensive development plan designed to enhance production efficiency and ensure sustainable growth in Iraq’s northern energy sector.
The deal forms part of the government’s broader initiative to upgrade national refining and production infrastructure. Expanding BP Iraq oil fields is expected to raise output by around 150,000 barrels per day and support Iraq’s strategic goal of producing eight million barrels per day in the coming years.
In line with Iraq’s aim to achieve gas self-sufficiency within three years, the project will also help reduce gas flaring and promote cleaner energy practices.
A source cited by Reuters revealed that BP may invest between $20 billion and $25 billion under a long-term profit-sharing agreement extending over 25 years.
The development of BP Iraq oil fields represents a cornerstone of Baghdad’s vision to strengthen energy security, attract foreign investment, and maximize returns from its vast natural resources.