Iraq Grants Final Approval to BP for Major Kirkuk Oil Field Redevelopment
The Iraqi government has granted final approval to BP for a significant contract to redevelop major oil fields in Kirkuk, northern Iraq. The agreement, signed between BP, the North Oil Company (NOC), and the North Gas Company (NGC), covers oil, gas, power, and water infrastructure, with additional exploration opportunities.
The deal was finalized during a high-level meeting attended by Iraqi Prime Minister Mohammed Shia' Al Sudani, Deputy Prime Minister for Energy Affairs and Oil Minister Hayan Abdul Ghani, BP CEO Murray Auchincloss, and senior BP executives, including Regional President for the Middle East and North Africa Nader Zaki and BP Iraq President Zaid Elyaseri.
📍Building on our history
— bp (@bp_plc) March 26, 2025
Yesterday we reached final agreement with the Iraqi Government to invest in the redevelopment of several giant oil fields in Kirkuk.
This deal marks a milestone as we strengthen our portfolio and look to deliver long term value for shareholders –… pic.twitter.com/osOEwJ0V3P
BP Eyes Major Expansion in Iraq
Auchincloss described the project as a major opportunity for BP’s oil and gas business, highlighting the company’s expertise in managing large-scale fields and executing complex energy projects.
Under the agreement, BP will form a new operating company in collaboration with NOC and NGC. The initial phase will focus on developing the Baba and Avanah domes within the Kirkuk field, along with three adjacent fields—Bai Hassan, Jambur, and Khabbaz—currently operated by NOC.
Vast Resource Potential
The project area holds an estimated total resource potential of up to 20 billion barrels of oil equivalent, positioning it as a key driver for Iraq’s future oil and gas production. The redevelopment is expected to enhance output, modernize infrastructure, and support Iraq’s energy sector growth.
This agreement marks a major step in Iraq’s efforts to attract foreign investment and revitalize its oil industry, particularly in the historically significant Kirkuk region.
