BP, the UK-based oil and gas giant, has struck a significant deal with the Iraqi government to invest in the redevelopment of major oil fields in northern Iraq. The deal covers multiple sectors, including oil, gas, power, and water development, with the potential for future exploration in the region.
The agreement specifically targets four main oil fields in Kirkuk: the Baba and Avanah domes of the Kirkuk oil field, and the Bai Hassan, Jambur, and Khabbaz developments. Currently, these fields are operated by Iraq’s North Oil Company (NOC). The initial phase of the project will focus on oil and gas production, exceeding 3 billion barrels of oil equivalent (Gboe). The broader opportunity in the area is estimated to hold up to 20 Gboe.
This deal follows a Memorandum of Understanding (MoU) signed in July 2024. Technical terms were agreed upon in December 2024, and commercial terms were finalized in January 2025. BP has previously worked on these fields between 2013 and 2019, further building on its existing presence in the region
In 2023, Iraq’s oil and gas production reached over 10 billion cubic meters (bcm) of natural gas and 212 million tonnes (Mt) of crude oil and natural gas liquids (NGLs). The country’s proven reserves were reported at 3,714 bcm for gas and 19,730 Mt for oil in the same year.
