Kirkuk oil on the cusp of a major boom with British BP
Kirkuk oil on the cusp of a major boom with British BP
2025-01-25 05:27
Shafaq News/ The administrative and financial assistant to the governor of Kirkuk, Jaafar Abbas Karim, revealed on Saturday new details regarding the contract between the Iraqi Ministry of Oil and the British company BP , while stressing that the cooperation will contribute to developing the North Oil Company and increasing its oil production .
Karim said in an interview with Shafaq News Agency, “The agreement with BP is an important step to develop the Iraqi economy, especially the economy in Kirkuk,” indicating that “this matter will be reflected in developing the reality of the North Oil Company by increasing its oil production, in addition to exploiting the associated gas resulting from oil extraction.”
Karim added that “the exploitation of associated gas will be through operating and implementing new power stations in Kirkuk within the contract,” noting that “Kirkuk Governorate is in dire need of revitalizing its economic reality, especially the oil and gas file, which will be reflected in improving services and sectors, most notably electricity.”
Karim pointed out that “the government agencies in the governorate are waiting for the company to start implementing the contract during the coming period.”
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 .
On the Iraqi side, the agreement was signed by Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul-Ghani, while on the BP side, it was signed by CEO Murray Auchincloss .
The memorandum includes the rehabilitation and development of four oil fields in Kirkuk, namely: Kirkuk field with its two domes (Baba and Avana), Bai Hassan field, Jambur field, and Khabbaz field, with the possibility of agreeing on other fields .
According to this memorandum, the government also aims to invest optimally in the energy sector to increase and enhance oil and gas production, including solar energy .
One month to start work
In the same context, oil expert Ali Khalil told Shafaq News Agency, “The agreement between the North Oil Company and the British company (BP) will enter into force within about a month for the purpose of starting to develop the oil fields in Kirkuk,” indicating that “BP has submitted its initial plan, which includes conducting surveys and preparing the oil wells whose overall production has decreased and working to raise the level of production in them.”
Khalil pointed out that “the current production of the oil fields in the North Oil Company ranges between 300,000 and 340,000 barrels, while the North Oil Company, about 15 years ago, was producing 750,000 barrels and was exporting about 500,000 barrels per day,” stressing that “BP will contribute to increasing production according to accurate data.”
On Wednesday, November 27, 2024, Kirkuk Governor Ribwar Taha revealed that the British company BP will begin work on developing the North Oil Company and its fields early next year, indicating that this will contribute to developing the oil and gas industry in the province .
Taha said in a statement to the agency at the time, “The presence of the British oil and gas company BP in Kirkuk is very important and they will invest in the gas sector, which is an important matter, and it will have a financial return and job opportunities for young people, as 96% of the workers in the Rumaila field in Basra within the work of the British company are Iraqis.”
It is noteworthy that a responsible source in the North Oil Company had previously informed Shafaq News Agency (Wednesday, November 27, 2024) that a delegation from the British company “BP” had arrived in Kirkuk Governorate to hold intensive meetings with the company’s management with the aim of reaching a final formula to begin developing the oil fields in the region .
shafaq.com
