Iraq’s Oil Minister Hayan Abdul-Ghani oversees the signing ceremony of the activation contract to develop four oil fields in Kirkuk and rehabilitate gas facilities with BP, the North Oil Company, and the North Gas Company
Iraq activates BP contract to develop Kirkuk oil fields, boost gas production
BAGHDAD – Iraq’s Ministry of Oil on Thursday announced the activation of a contract with British energy giant BP to develop four major oil fields in Kirkuk and rehabilitate gas facilities, as part of efforts to raise crude and gas production and support the national economy.
The agreement, originally signed in August, involves the North Oil Company, North Gas Company, and BP. Deputy Prime Minister for Energy Affairs and Oil Minister Hayan Abdul-Ghani, who sponsored the signing, said the contract will help stabilize production and create jobs in the region.
“We celebrate today the activation of the contract to develop the four Kirkuk fields,” Abdul-Ghani said. “This is one of the promising contracts aimed at developing the Kirkuk dome fields Baba and Avana, Jambur, Bai Hassan, and Khabbaz, in addition to rehabilitating North Gas Company facilities to increase gas production to supply power plants with the fuel they need.”
He said the contract initially targets a production level of 328,000 barrels per day, with further increases expected as development operations progress. The project also aims to boost investment in associated gas, which is often flared due to limited infrastructure.
Abdul-Ghani added that the contract would create job opportunities in Kirkuk and nearby governorates and ensure fuel supplies for electricity generation and local industries.
BP’s Iraq country manager, Zaid Elyaseri, described the contract activation as a “key step to strengthen genuine cooperation and partnership” with Iraqi companies. He praised the oil ministry for supporting efforts to raise output.
Amer Khalil, director general of the North Oil Company, said the agreement marks the start of development work with “major benefits for the governorate.” Ahmed Abdulmajid, director general of the North Gas Company, said the rehabilitation of gas facilities would improve supply to power plants and local industries.
The original memorandum of understanding was signed on Aug. 1 by Oil Minister Abdul-Ghani and BP CEO Murray Auchincloss. It included plans to develop the Baba and Avana domes, Bai Hassan, Jambur, and Khabbaz fields, and left open the possibility of future agreements for other fields or exploration blocks.