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UK-based BP’s planned investment in developing several giant oil fields in Kirkuk could be worth as much as $25bn, including investments in oil, gas, power and water.

The Iraqi oil and gas expert Ali Khalil said: “The agreement with Iraq’s Ministry of Oil is expected to help revive output at the North Oil Company, which has struggled since the 2014 Islamic State insurgency and subsequent stagnation.”

Speaking to Iraq-based Shafaq News, Khalil said that the contract would have an investment value of around $25bn and would contribute to the development of the North Gas Company and the construction of solar-powered power stations.

BP previously said that, on top of investments in oil, gas, power and water, the contract has the potential for investment in exploration.

Khalil said BP’s investment is intended to increase crude oil production from the Kirkuk fields by about 150,000 barrels a day (b/d), targeting a total capacity of at least 450,000 b/d within two to three years.

Kirkuk’s oil output has seen sharp declines over the years. Between 2005 and 2010, production ranged from 600,000 to 725,000 b/d, with around 500,000 b/d exported to Turkiye’s Ceyhan port. By 2014, production had fallen to 400,000-500,000 b/d, dropping further to 250,000-325,000 b/d in the following years due to reduced well productivity.

In December last year, BP agreed technical terms for developing the Kirkuk oil fields.

This was followed by an agreement on all contractual terms, which was announced on 25 February 2025.

The contract was then signed on 10 March 2025.

In a statement, Deputy Prime Minister for Energy Affairs and Oil Minister Hayyan Abdul-Ghani called the contract signing for the development of NOC fields a “major achievement” for both the ministry and the company.

He said that the development and rehabilitation efforts would boost national production, and increase gas investment and production to support electricity generation.

He added that "the ministry is focused on maximising the state's oil and gas resources, which will positively impact the federal budget’s financial resources.”

The contract includes the rehabilitation and development of the four Kirkuk oil fields:

• Baba and Avana domes
• Bai Hassan
• Jambur
• Khabbaz

Last week, a delegation from BP visited the NOC’s headquarters to finalise steps for rehabilitating the four fields.

BP, which was part of the consortium that discovered oil in Kirkuk in the 1920s, previously signed a letter of intent in 2013 to study the Kirkuk fields’ development, but the plan was suspended in 2014 after Islamic State took control of parts of northern and western Iraq.

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Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes: