“Sharing profits” .. British Petroleum prepares to invest $ 25 billion in Kirkuk
“Sharing profits” .. British Petroleum prepares to invest $ 25 billion in Kirkuk
2-4-2025
Information/ Translation..
A report by Reuters revealed on Tuesday that the British company BP is preparing to invest up to $25 billion over the life of a project to redevelop four oil and gas fields in Kirkuk, at a time when Baghdad seeks to regain foreign investment.
The report, which was translated by / Al-Maalomah / agency, stated that “if the deal is signed, which an Iraqi official who declined to be identified said could happen in the coming weeks, it would represent a breakthrough for Iraq, where production has been restricted by years of war, corruption and sectarian tensions.”
“BP will invest between $20 billion and $25 billion in a profit-sharing agreement that will last for more than 25 years,” the Iraqi official with direct knowledge of the deal said. The British company did not immediately respond to a request for comment on the size of the deal, which has not been publicly disclosed.
The report continued: “The expected agreement with BP will be the second major agreement between Iraq and an international oil company in two years, following the agreement reached in Basra with France’s TotalEnergies, which was worth about $27 billion.”
The report indicated that “the agreement with BP focuses on rehabilitating facilities at four oil fields and developing natural gas to support Iraq’s domestic energy needs, while the Iraqi official said that technical and economic negotiations are progressing well and final contracts could be signed in the first half of February and possibly by the end of this week.”
The report indicated that “under the terms of the contract, BP will work to boost crude oil production capacity from the four oil fields in Kirkuk by about 150,000 barrels per day to raise total capacity to at least 450,000 barrels per day within two to three years, under the profit-sharing model that was agreed upon.” Discussing it, the senior oil official said BP would be able to recover costs and start making profits once production increases beyond current levels, the official said.
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