BP has signed a memorandum of understanding (MoU) with the Government of the Republic of Iraq to negotiate an extensive integrated redevelopment program for the Kirkuk region. This initiative encompasses oil and gas investment, power generation, solar energy, and broader exploration activities.
“This MoU builds on BP’s strategic and longstanding relationship with Iraq. We see today’s signing as an important step towards the potential further development of this critically important area. It aligns with BP’s six clear priorities and supports our drive to deliver as a simpler, more focused, higher-value company,” said Murray Auchincloss, BP’s Chief Executive Officer.
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 executives, including CEO Murray Auchincloss, BP Regional President for Middle East and North Africa Nader Zaki, and BP President Iraq Zaid Elyaseri.
The MoU covers the Baba and Avanah domes and three adjacent fields—Bai Hassan, Jambur, and Khabbaz—in Federal Iraq, all operated by the Government of Iraq’s North Oil Company (NOC). The program aims to rehabilitate existing facilities and construct new ones, including gas expansion projects, alongside a comprehensive drilling program. This could stabilize production, reverse declines, and return the Kirkuk oilfield to a growth trajectory.
The redevelopment initiative promises significant investment and opportunities for the Kirkuk region, potentially spurring downstream growth and delivering tangible benefits to the local population through job creation and local supply requirements. BP also plans to explore power generation investments and introduce solar power facilities as part of the agreement.
Negotiations are expected to conclude by early 2025, paving the way for a new era of development and collaboration in the Kirkuk region.
