BP and Iraq finalize contract for Kirkuk redevelopment

BP has received final government ratification for its contract to invest in the redevelopment of several giant oil fields in Kirkuk, in the north of Iraq. The contract between North Oil Company (NOC), North Gas Company (NGC) and BP includes the rehabilitation and redevelopment of the fields, spanning oil, gas, power and water with potential for investment in exploration.

The final agreement was signed in a meeting in Baghdad with Iraq Prime Minister H.E. Mohammed Shia’ Al Sudani, H.E. Hayan Abdul Ghani, Deputy PM for Energy Affairs and Minister of Oil, and BP Chief Executive Murray Auchincloss, together with Nader Zaki, BP Regional President for Middle East and North Africa, and Zaid Elyaseri, BP President Iraq.

Now that the agreement has full approval, BP will work under the guidance of the government to set up a new operator – an unincorporated organization comprising predominantly personnel from NOC and NGC, but also with secondees from BP – to prepare for the initial stages of development.

The agreement is for an initial phase that includes oil and gas production of more than 3 billion boe. It includes the Baba and Avanah domes of the Kirkuk oil field and three adjacent fields in Federal Iraq – Bai Hassan, Jambur and Khabbaz – all of which are currently operated by the NOC. The wider resource opportunity across the contract and surrounding area is believed to include up to 20 billion boe.