BP is making a strategic return to Iraq with a significant investment of up to $25 billion in the Kirkuk oil and gas fields. This ambitious plan focuses on redeveloping four major oil fields: Kirkuk, Bai Hasan, Jambour, and Khabbaz, with the goal of boosting production capacity by at least 150,000 barrels per day, reaching a total of 450,000 barrels per day.
Unlike Iraq's traditional service contracts, which provided fixed fees per barrel, this new deal introduces a profit-sharing model spanning 25 years. This shift is designed to attract foreign investment by offering more lucrative terms, ensuring long-term collaboration between Iraq and major international oil companies.
BP has a deep-rooted history in the Kirkuk region, dating back to the 1920s when it was involved in the discovery of oil in the area. The company has previously entered agreements to develop these fields, but political instability and regional conflicts hindered progress. This renewed commitment signals a fresh chapter for BP’s role in Iraq’s energy sector.
Beyond boosting oil production, BP’s project also focuses on modernizing infrastructure and expanding Iraq’s natural gas resources. By rehabilitating existing facilities and improving gas development, the initiative will support Iraq’s energy security and reduce dependence on imported energy sources.
Negotiations between BP and the Iraqi government have been progressing steadily, with the final contract expected to be signed by mid-February 2025. This investment is poised to be a key milestone in Iraq’s efforts to revitalize its oil industry and attract more foreign capital.
As Iraq looks to strengthen its position as a leading oil producer, BP’s renewed commitment could provide the much-needed momentum to drive economic growth and energy sustainability in the region.
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