Iraq signs a contract with BP to develop and produce the four Kirkuk oil fields.
Iraq signs a contract with BP to develop and produce the four Kirkuk oil fields.
2025-03-26 04:09
Shafaq News/ Prime Minister Mohammed Shia al-Sudani sponsored, on Wednesday, the signing ceremony of a contract between the Ministry of Oil and the British company (BP), regarding the project to develop and produce the four oil fields in Kirkuk, which are: (Kirkuk with its two domes (Baba and Avana), Bai Hassan, Jambur, and Khabbaz).
A statement issued by the Sudanese media office explained that the contract includes the rehabilitation and development of the four fields to enhance hydrocarbon wealth reserves and increase crude oil production rates with the aim of reaching a peak production rate of (420) thousand barrels/day.
According to the statement, the contract also includes investment in associated gas through the rehabilitation and expansion of the North Gas Company’s facilities to produce (400) million standard cubic feet/day, and the establishment of a power station with a capacity of 400 megawatts.
The statement indicated that the project will contribute to halting the continued burning of gas associated with crude oil production by utilizing it optimally, providing the fuel needed for power plants, and absorbing a workforce of various specialties and developing the technical and engineering cadres working there.
A responsible source at the North Oil Company reported, in early March, that a delegation from the British oil company BP arrived at the company’s headquarters and discussed the final steps to begin the rehabilitation process at four of the company’s largest fields.
The source told Shafaq News Agency, “The North Oil Company received a visit from the British company BP on March 4th, aiming to prepare early for the implementation of the contract to be signed between the two parties as soon as possible.”
According to the source, the two parties held an expanded meeting chaired by the company’s general manager, Amer Khalil Ahmed, and attended by directors of central departments and agencies. The bP side was headed by Zaid Al-Yasiri.
The source added, “The attendees discussed the technical and operational aspects of the contract, and the necessary implementation steps to ensure efficient progress according to the specified schedule. North Oil Company reached understandings on the fields and provided the British company with a complete picture of production levels.”
According to the source, the BP delegation expressed their aspiration to implement the project according to the highest standards, praising the efforts of the North Oil Company and its willingness to provide the appropriate environment for implementing the terms of the agreement.
On August 1, 2024, Prime Minister Mohammed Shia al-Sudani sponsored the signing ceremony of a comprehensive oil memorandum of understanding between the Ministry of Oil and BP to develop the Kirkuk fields.
The agreement was signed on behalf of the Iraqi side by Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul-Ghani, while BP CEO Murray Auchincloss signed on behalf of the company.
The memorandum includes the rehabilitation and development of four oil fields in Kirkuk: the Kirkuk field with its two domes (Baba and Avana), the Bai Hassan field, the Jambur field, and the Khabbaz field, with the possibility of agreement on other fields.
According to this memorandum, the government also aims to optimize investment in the energy sector to increase and enhance oil and gas production, including solar energy.
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