bp and Iraq Join Forces for Kirkuk Redevelopment & Offshore Activities

bp has entered into a strategic partnership with the Iraqi government to explore opportunities for a comprehensive redevelopment of the Kirkuk region. This initiative will cover significant oil and gas investments, power generation, and solar energy projects, along with broader exploration activities. The program aims to enhance the region's energy infrastructure, boost economic development, and support Iraq's energy transition efforts, demonstrating bp's commitment to sustainable and diversified energy solutions in the region.

The non-binding MoU was signed during a meeting between Iraq's Prime Minister H.E. Mohammed Shia' Al Sudani, H.E. Hayan Abdul Ghani, Deputy PM for Energy Affairs and Minister of Oil, and bp chief executive Murray Auchincloss. The signing also included Nader Zaki, bp regional president for Middle East and North Africa, and Zaid Elyaseri, bp President Iraq. This agreement signifies a collaborative effort to advance Iraq's energy sector through a comprehensive redevelopment program for the Kirkuk region, focusing on oil and gas investment, power generation, solar energy projects, and wider exploration activities.

The recently executed Memorandum of Understanding (MoU) for the Kirkuk project encompasses the Baba and Avanah domes, as well as the contiguous fields of Bai Hassan, Jambur, and Khabbaz, situated within the territory of Federal Iraq. These areas are operated by the Government of Iraq’s North Oil Company (NOC). This agreement aims to enhance collaboration and investment in these key regions, focusing on oil and gas development, power generation, and renewable energy initiatives, ultimately supporting the economic growth and energy stability of Iraq.

Murray Auchincloss, bp's chief executive officer, highlighted that the newly signed Memorandum of Understanding (MoU) with Iraq strengthens bp's long-standing relationship with the country and marks a significant step toward further development in the region. This agreement aligns with bp's strategic goals, which include simplifying operations, focusing on core areas, and enhancing value. The partnership supports bp’s objectives of driving efficiency and growth, reinforcing its commitment to becoming a more streamlined and high-value energy company.

The rehabilitation of existing facilities and the construction of new ones, including gas expansion projects and a drilling program at the Kirkuk fields, have the potential to stabilize production and reverse its decline. This effort aims to return the nationally important oilfield to a growth path, ensuring sustainable production levels. The comprehensive redevelopment initiative underscores the commitment to optimizing the oilfield's output and enhancing operational efficiency.

Moreover, the integrated redevelopment program is poised to bring significant opportunities and investment to the Kirkuk region, unlocking future downstream growth. It aims to deliver tangible benefits to the local population through job creation and meeting local supply requirements. This initiative not only supports economic development but also contributes to energy stability, fostering a positive impact on the community and the broader region. These initiatives aim to enhance energy infrastructure and support sustainable development. Negotiations for these projects are expected to be completed by early 2025.