Iraq and BP Activate Kirkuk Oil Development Contract

Iraq has officially activated the contract to develop four major oil fields in Kirkuk and rehabilitate gas facilities. The agreement was signed between the North Oil Company, North Gas Company, and BP (British Petroleum), under the patronage of the Deputy Prime Minister for Energy Affairs and Minister of Oil, Engineer Hayan Abdul-Ghani Al-Sawad,

Speaking at the signing ceremony, Minister Abdul-Ghani emphasised the government’s commitment to increasing crude oil and gas production in Kirkuk to support the national economy and meet domestic fuel demands.

The contract covers the development of Kirkuk’s four fields: Baba and Avana domes, Jambur, Bai Hassan, and Khabbaz, in addition to upgrading gas facilities operated by the North Gas Company. The aim is to increase natural gas output for electricity generation and industrial use.

The Minister announced that initial production is set at 328,000 barrels per day, marking the start of the project’s implementation phase. He added that production is expected to rise further as field development continues, helping Iraq make better use of associated gas while creating job opportunities in Kirkuk and nearby provinces.

BP’s Country Director in Iraq, Zaid Al-Yasiri, described the activation as “a key step to strengthen cooperation and partnership with Iraqi companies in developing Kirkuk’s oil potential.” He thanked the Ministry of Oil for its support in achieving Iraq’s long-term energy goals.

The Director General of the North Oil Company, Amer Khalil, said the project will have “significant benefits for Kirkuk,” while North Gas Company Director, Ahmed Abdul-Majeed, confirmed that increased gas output will enhance electricity supply and provide fuel for local industries.

This partnership marks another step in Iraq’s ongoing efforts to develop its oil and gas infrastructure, attract foreign investment, and boost energy security across the country.

Source: Ministry of Oil Iraq