Peregraf
The Iraqi Ministry of Oil has announced the formalization of an agreement with British Petroleum (BP) aimed at the development of five oil fields located in Kirkuk. This agreement was executed today under the oversight of the Iraqi Oil Minister, with the objective of enhancing oil production in Kirkuk through the advancement of the Avana, Baba, Bai Hassan, Khubbaz, and Jambour fields.
The Iraqi Minister of Oil characterized the signing of this development agreement for the Kirkuk oil fields as a notable milestone, asserting that the modernization and enhancement of these fields will not only elevate national oil production but also increase gas output to facilitate electricity generation.
In August 2024, a memorandum of understanding was established between British Petroleum and Hayan Abdul Ghani, the Iraqi Minister of Oil, concerning the development of the Kirkuk oil field, which currently yields approximately 250,000 barrels of oil daily.
Murray Auchincloss, the Chief Executive Officer of British Petroleum (BP), previously indicated that the field encompasses five oil-rich zones with estimated reserves of around 20 billion barrels. He highlighted that the prevailing international conditions are advantageous, and the Iraqi government is ready to collaborate with BP in a significantly more stable security context.
This initiative signifies a substantial re-entry of British Petroleum's operations into the Middle East. BP is presently focused on the Rumaila oil field in Basrah, which contributes nearly one-third of Iraq's overall oil production.
There are also increasing expectations for the revival of Kirkuk oil exports to international markets via Turkey. Exports of oil from Kirkuk and the Kurdistan Region have been suspended since March 2023, following a ruling by the International Court of Arbitration that favored Iraq in its dispute with Turkey regarding oil transportation agreements.