Iraq and oil major BP have signed a deal to redevelop four Kirkuk oil and gas fields, BP said yesterday, a breakthrough for Iraq, where output has been constrained by years of war, corruption and sectarian tensions.
The signing comes a day before BP plans to update investors on its strategy and is widely expected to reduce investments in renewable energy and shift back to invest more in oil and gas.
BP is expected to spend up to $25 billion over the lifetime of the project, a senior Iraqi oil official told Reuters in early February.
Under the terms of the agreement, which is subject to final ratification by Iraq’s government, BP will work with North Oil Co.(NOC), North Gas Co. (NGC) and the new operator to stabilize and grow production, BP said.
Work will include a drilling programme, the rehabilitation of existing wells and facilities, and the construction of new infrastructure, including gas expansion projects, it added.