Listen to the article: Audio text automatically generated by an automated system

0:00

2 minutes to read

ConocoPhillips said on Friday it has agreed to acquire a 42% stake in BP Energy Limited in Kirkuk from BP, joining the British oil giant in redeveloping four oil production fields in northern Iraq.

The agreement is expected to be signed during the official visit of Iraqi Prime Minister Ali al-Zeidi to Washington, as he seeks to increase U.S. investments in Iraq's oil, gas and energy sectors following the disruptions caused by the conflict with Iran.

Sources: Oil loading stops at Iraqi ports... Baghdad: Operations continue in the south

The contract includes developing recoverable resources exceeding 3 billion barrels of oil equivalent, with additional exploration potential in the Baba and Avana domes in the Kirkuk oil field, and the Bai Hassan, Jambur, and Khabaz fields.

The deal comes as part of BP's restructuring of its investment portfolio under CEO Meg O'Neill, who took office in April after a long career at Exxon Mobil.

O'Neill pledged to simplify the company's operations, strengthen capital management, and direct investment toward higher-return oil and gas assets, while recycling capital through selective partnerships and asset sales.

For Iraq, this is another step to attract more U.S. investments to a sector where Chinese companies have increasingly dominated in the past few years.

The cabinet led by al-Zeidi recently approved an agreement with U.S. company HKN Energy to develop the Hamrin oil field in northern Iraq, and also approved a cooperation agreement with General Electric to expand power generation and transmission in the country.

The Kirkuk field, discovered nearly a century ago, is one of the oldest producing oil fields in Iraq and still holds large reserves, making it central to Baghdad's plans to sustain crude oil production in the coming decades.

BP said the deal will not affect the contract terms or the operating roles of Iraqi companies North Oil and North Gas, or a planned process to transfer operational management to an entity largely composed of their employees.

The two companies indicated that the joint venture does not require significant capital contributions.

The deal is expected to close by the end of 2026.

Advertisement

Advertisement

Read also

Chinese company begins oil exploration in southern Iraq: Executes 2D seismic survey in Adan exploration block in Muthanna province - Energy

Turkey: Iraq seeks to increase capacity of Kirkuk-Ceyhan oil pipeline to 750,000 barrels per day - Energy

French TotalEnergies CEO: Syria could become 'important transit country' for Iraqi oil, paving way for export via alternative routes - Energy