Iraq signs MoU with BP to develop oil fields in Kirkuk
The Iraqi government signed on Thursday a Memorandum of Understanding (MoU) with British Petroleum (BP) to rehabilitate and develop four oil fields operated by the North Oil Company (NOC) in the northern Iraqi governorate of Kirkuk.
The MoU was signed by the Iraqi Minister of Oil, Hayan Abdul-Ghani, and BP chief executive officer, Murray Auchincloss, according to a statement released by the Prime Minister’s Office (PMO).
The MoU is part of the Iraqi government’s effort to maximize investments in the energy sector in order to improve and expand oil production, solar energy, and gas utilization in the area.
Iraq, the second largest producer in the Organization of the Petroleum Exporting Countries (OPEC) after Saudi Arabia, currently has the capacity to produce nearly five million barrels per day.
Drilling at the Kirkuk fields, along with the renovation of existing facilities as needed and the construction of new ones, including gas expansion projects, have the potential to stabilize production, reverse decline, and put this strategically significant oilfield back on a path to prosperity, according to a statement released by BP.
BP also suggests looking into potential investments in power generation and the installation of solar power facilities in the area as part of today’s Memorandum of Understanding.
The negotiations between BP and the Iraqi government are expected to be concluded early in 2025.
