Iraq, BP Agree on Kirkuk Oil Field Deal

Iraq and BP have signed a Memorandum of Understanding (MoU) to evaluate the redevelopment of four oil fields in Kirkuk, with formal agreements expected by early February. This deal, which is anticipated to exceed the $27 billion TotalEnergies agreement from 2023, aims to increase oil production by up to 150,000 barrels per day and includes components for gas production. The MoU was signed in London and seeks to modernize the fields operated by the North Oil Company, enhancing their production capabilities while addressing issues like gas flaring by 2028. Unlike previous contracts, this agreement is expected to provide more favorable profit-sharing terms to BP, reflecting a shift in Iraq's approach to foreign investment in its oil sector. The Kirkuk fields, estimated to hold about 9 billion barrels of recoverable oil, are crucial to Iraq's oil strategy as the nation seeks to bolster its production capacity. This initiative underscores Iraq's ongoing efforts to optimize its oil resources amid a backdrop of significant historical ties between BP and the region.