The Iraqi Ministry of Oil announced on Monday that it has signed a deal with British Petroleum (BP) to develop four oilfields in the northern province of Kirkuk. The deal, which involves the North Oil Company (NOC) and North Gas Company, is aimed at optimizing Iraq’s oil and gas resources.
Iraqi Minister of Oil, Hayan Abdul-Ghani, emphasized the commitment to maximizing state resources, which will positively impact the financial stability of the federal budget. The agreement aligns with the memoranda of understanding that were discussed during Prime Minister Al-Sudani’s recent visit to the United Kingdom.
The project covers the development of the Bai Hassan, Kirkuk, Jambur, and Khabbaz oil fields, and includes strategic elements such as the utilization of associated gas, the restoration and expansion of gas infrastructure at the North Gas Company, and the construction of a 400-megawatt power plant.
In addition to boosting oil and gas production, the project is expected to create job opportunities, involve local businesses, and contribute to social initiatives. BP is expected to invest between $20 billion and $25 billion under a profit-sharing arrangement that could span over 25 years.