BP to Develop Iraq's Kirkuk Oil Fields

BP Plc is set to re-enter Iraq's Kirkuk oil and gas fields under a profit-sharing model, with a final agreement expected by the end of this year. Iraqi oil ministry officials announced that a preliminary agreement was signed earlier this month, allowing BP to develop four fields estimated to contain approximately 9 billion barrels of recoverable oil. The oil ministry and BP are expected to sign a confidentiality agreement this week, after which Iraq will provide a data package for the fields. Current production at Kirkuk stands at 245,000 barrels per day. This move comes as Iraq aims to attract foreign investment by shifting from low-margin service contracts to more lucrative profit-sharing agreements. BP's return follows its withdrawal in late 2019 after its service contract expired without an expansion agreement.