Peregraf
The Iraqi Ministry of Oil announced on Thursday the activation of a major contract with British energy giant BP to develop four Kirkuk oil fields and rehabilitate gas facilities in the province, in cooperation with the North Oil Company and the North Gas Company.
At a signing ceremony in Baghdad, Deputy Prime Minister for Energy Affairs and Oil Minister Hayan Abdul Ghani said the agreement reflects the government’s strategy to boost crude oil and gas production to strengthen the national economy and meet growing fuel demand.
“Today we celebrate the activation of the contract to develop the Kirkuk fields — Baba and Avana domes, Jambur, Bai Hassan, and Khabbaz — in addition to rehabilitating the North Gas Company’s facilities,” Abdul Ghani said. He added that the contract aims to stabilize an initial production rate of 328,000 barrels per day, with future increases expected as development operations expand.
The minister stressed that the project will create job opportunities in Kirkuk and surrounding areas, while ensuring stable fuel supplies for power generation and local industries.
BP’s Country Manager in Iraq, Zaid Al-Yasiri, described the contract as a “major step toward strengthening genuine cooperation and partnership” with Iraq. Amer Khalil, General Manager of the North Oil Company, said the deal marks the beginning of field development operations that will significantly benefit the governorate. North Gas Company General Manager Ahmed Abdul Majeed emphasized that the rehabilitation of gas facilities will increase supplies to power plants and industries nationwide.
BP has previously referred to the Kirkuk fields as one of its global “dream fields,” alongside Azerbaijan’s ACG field, the Mad Dog field in the Gulf of Mexico, and India’s Mumbai field. The company estimates that Kirkuk holds up to 20 billion barrels of oil equivalent.
Mohammed Hussain, BP Vice President for Subsea in the Middle East, said the company’s long history in Kirkuk and its trust-based relationship with Iraq were key reasons for its return. “This field represents a lifeline for the community and symbolizes BP’s strong partnership with Iraq,” he said.
The signing builds on a March 2025 agreement between Iraq and BP to develop Kirkuk’s oil fields and follows a 2024 memorandum of understanding. The initiative marks BP’s expanded re-entry into northern Iraq, complementing its operations in Basrah’s Rumaila field, which currently provides about one-third of Iraq’s total oil output.
The project also raises expectations for the long-awaited resumption of Kirkuk oil exports to Turkey, halted since March 2023 after an international arbitration ruling in favor of Iraq in its dispute with Ankara over oil transport agreements.