The UK oil and gas company BP has reached an agreement with the Iraqi Government to invest in the rehabilitation and redevelopment of several large-scale oil fields in Kirkuk, northern Iraq. The agreement encompasses oil, gas, power and water development, with potential for future exploration investment.
The deal covers four main fields in Iraq, namely the Baba and Avanah domes of the Kirkuk oil field, along with the Bai Hassan, Jambur and Khabbaz developments, all currently operated by Iraq’s North Oil Company (NOC). The initial phase includes oil and gas production exceeding 3 Gboe, while the wider resource opportunity across the area is believed to include up to 20 Gboe.
The agreement follows a Memorandum of Understanding signed in July 2024, with technical terms agreed in December 2024 and commercial terms finalised in January 2025. It also builds upon BP's previous work on the Kirkuk fields from 2013 to 2019.
In 2023, Iraq produced over 10 bcm of natural and 212 Mt of crude oil and NGLs. The country’s proved reserves stood at 3,714 bcm for gas and 19,730 Mt for oil in 2023.