BP and Iraq have reached an agreement on technical terms for redeveloping the Kirkuk oil fields in northern Iraq, as reported by several news agencies. This milestone follows an agreement signed in August, under which BP will develop and explore the Kirkuk oilfield. The plan includes enhancing oil production and establishing supporting infrastructure such as power plants and solar energy facilities, aligning with Iraq's broader energy development goals.

As the second-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) after Saudi Arabia, Iraq boasts a production capacity nearing 5 million barrels per day. The redevelopment of the Kirkuk field is expected to further bolster this capacity. Unlike previous contracts that offered limited profit margins for foreign companies, the new agreements reportedly introduce a more lucrative profit-sharing model, making the venture more attractive for international partners.

BP’s involvement in the Kirkuk oilfields is steeped in history, as it was part of the consortium that discovered oil in the region during the 1920s. The company has estimated that the Kirkuk field contains approximately 9 billion barrels of recoverable oil, highlighting its significance as a vital asset in Iraq’s oil portfolio.

In addition to its work in Kirkuk, BP holds a 50% stake in the joint venture managing the Rumaila oilfield in southern Iraq, one of the world's largest oilfields. BP has operated in Rumaila for nearly a century, contributing to Iraq's prominence as a global oil supplier.

The redevelopment of Kirkuk aligns with Iraq's ambitions to modernize its energy infrastructure and diversify its energy sources. It also underscores BP’s ongoing commitment to supporting Iraq's energy sector while exploring sustainable solutions, such as integrating renewable energy into oilfield operations. This partnership is poised to reinforce Iraq’s position as a leading oil producer while driving economic growth and energy security.