BP and Iraq Government Sign MoU for Kirkuk Region Redevelopment

BP and Iraq Government Sign MoU for Kirkuk Region Redevelopment

(IN BRIEF) BP and the Government of Iraq have signed a memorandum of understanding (MoU) to negotiate a redevelopment programme for the Kirkuk region. This includes investments in oil and gas, power generation, solar energy, and exploration activities. The MoU covers the redevelopment of key oil fields operated by Iraq’s North Oil Company and aims to stabilize and increase production.

The agreement is expected to bring significant investment and job creation to the Kirkuk region. Negotiations are anticipated to be completed by early 2025.

(PRESS RELEASE) LONDON, 2-Aug-2024— /EuropaWire/ — bp (LON: BP), a British multinational oil and gas company, has entered into a memorandum of understanding (MoU) with the Government of the Republic of Iraq to negotiate an extensive integrated redevelopment programme for the Kirkuk region. This initiative encompasses investments in oil and gas, power generation, solar energy, and broader exploration activities.

The signing of the MoU was attended by Iraq’s Prime Minister H.E. Mohammed Shia’ Al Sudani, Deputy Prime Minister for Energy Affairs and Minister of Oil H.E. Hayan Abdul Ghani, along with BP’s Chief Executive Officer Murray Auchincloss, BP’s Regional President for the Middle East and North Africa Nader Zaki, and BP’s President Iraq Zaid Elyaseri.

Murray Auchincloss emphasized the significance of this agreement, stating, “This MoU builds on BP’s strategic and longstanding relationship with Iraq. We see today’s signing as an important step towards the potential further development of this critically important area. It aligns with BP’s six clear priorities and supports our drive to deliver as a simpler, more focused, higher value company.”

The MoU targets the redevelopment of key oil fields in Kirkuk, including the Baba and Avanah domes and three adjacent fields – Bai Hassan, Jambur, and Khabbaz, operated by the Government of Iraq’s North Oil Company (NOC). The redevelopment plan includes rehabilitating existing facilities, constructing new ones, and implementing a drilling programme aimed at stabilizing and boosting production.

This programme promises to bring significant opportunities and investments to the Kirkuk region, potentially unlocking future downstream growth and providing tangible benefits to the local population, such as job creation and local supply requirements. Additionally, BP proposes to explore investments in power generation and introduce solar power facilities as part of the MoU.

Negotiations for this initiative are expected to conclude by early 2025.

Notes to editors

• bp was a member of the consortium of oil companies that discovered oil in Kirkuk in the 1920s.
• From 2013 to 2019 bp worked with the Ministry of Oil and North Oil Company on technical studies exploring the potential for redevelopment at Kirkuk.
• bp provide technical advice and support to lead contractor at Rumaila – Basra Energy Company Limited – which is working with the Rumaila Operating Organisation (ROO), the operator of Rumaila, Iraq’s largest producing oilfield.

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SOURCE: BP p.l.c.