ConocoPhillips will acquire a 42% stake in BP Energy Company of Kirkuk Limited, joining UK energy company bp in the redevelopment of several large oil fields in the Kirkuk region of northern Iraq.
The agreement is expected to be signed during an official visit by Iraqi Prime Minister Ali Al-Zaidi to Washington, D.C.
“Kirkuk is a world-class resource base that can support Iraq’s long-term energy ambitions while creating value for both the country and bp. This partnership with ConocoPhillips brings together two great teams and positions us well for the next phase of redevelopment. We’re being deliberate about where we invest, backing high-quality resources that can deliver long-term value for our shareholders,” Chief Executive Officer Meg O’Neill said.
The development and production contract covers an initial phase targeting more than 3 billion barrels of oil equivalent from the Baba and Avanah domes of the Kirkuk oil field, as well as the adjacent Bai Hassan, Jambur and Khabbaz fields in federal Iraq.
The fields are currently operated by the Northern Oil Company (NOC). The contract area also includes additional exploration potential.
bp’s relationship with Iraq spans more than a century and includes decades of operations in both the country’s north and south.
Following completion of the transaction, bp will remain the majority shareholder in BP Energy Company of Kirkuk Limited and a leading member of the contractor group.
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