ConocoPhillips joins bp in Kirkuk oil field redevelopment in Iraq
ConocoPhillips has agreed to acquire a 42% interest in BP Energy Co. of Kirkuk Ltd. (BP ECKL) from bp plc as part of a plan to redevelop four large-scale oil fields in the Kirkuk area of northern Iraq. Financial terms were not disclosed.
Consistent with our focus on capital discipline, we see an opportunity to create value through a capital-efficient redevelopment program that leverages a large existing production base, while also offering meaningful exploration upside.
- Ryan Lance, ConocoPhillips chairman and CEO
BP ECKL holds the Development and Production Contract (DPC) covering the currently producing, historically prolific Baba and Avanah domes of Kirkuk oil field and the adjacent Bai Hassan, Jambur, and Khabbaz fields in federal Iraq. All four fields are currently operated by the Northern Oil Co. (NOC).
bp, a member of the consortium of oil companies that discovered oil in Kirkuk in the 1920s, last year received final government ratification of a contract to invest in redevelopment of the fields. The ratification followed a memorandum of understanding signed between bp and Iraq in July 2024 aimed at advancing works to stabilize production and reverse field decline.
The DPC includes an initial gross recoverable resource of more than 3 billion boe, to be recovered through field rehabilitation, redevelopment, and optimization activities. The contract area also includes additional exploration potential.
The agreement is expected to be signed during Iraqi Prime Minister Ali al-Zaidi's official visit to Washington, DC, and to close by yearend, subject to regulatory approvals and other customary closing conditions.
bp, in a release, said it will remain the majority shareholder in BP ECKL and a key participant in the contractor group. bp characterized the Kirkuk redevelopment as a long-term value opportunity, saying the project aligns with its investment priorities.
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Mikaila Adams
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Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was later named Managing Editor - News. Her role has expanded into content strategy. She holds a degree from Texas Tech University.