Iraq activated its contract with British company BP to develop four major Kirkuk oilfields and upgrade gas facilities. The project aims to strengthen fuel supply for power generation. This step supports Iraq’s efforts to modernize energy infrastructure and expand domestic production.
The Ministry of Oil confirmed the agreement covers Kirkuk, Bai Hassan, Jambur, and Khabbaz oilfields. The contract also includes North Gas Company facilities, which will receive upgrades to improve gas use and reduce flaring. Officials expect initial production to reach 328,000 barrels per day, with increases as development continues.
Minister Hayan Abdul Ghani described the contract as one of Iraq’s most promising energy deals. He said the project will raise crude output, enhance gas utilization, and provide resources to local industries. It will also create jobs in Kirkuk and nearby provinces, boosting economic growth.
BP will provide technical expertise and investment to optimize production and improve operational efficiency. Iraqi authorities highlighted that modernizing the oilfields strengthens national energy security and supports regional stability.
The project aligns with Iraq’s broader energy strategy to maximize hydrocarbon resources and attract foreign investment. By combining international expertise with local workforce participation, the initiative ensures sustainable growth.
Energy analysts said the Kirkuk revival could serve as a model for other fields, showing how international partnerships can enhance production, improve gas use, and benefit communities.
Officials expect the project to significantly increase national energy supply and reinforce regional economic resilience. They remain committed to monitoring progress and ensuring investments benefit both energy and local populations.