Iraq’s Oil Ministry has announced signing a memorandum of understanding (MoU) with the UK's BP to develop oil fields in the Kirkuk governorate.

BP will undertake surveys and studies to evaluate the potential of the Kirkuk oil fields and raise its output to 750,000 barrels a-day (b/d), BP’s Iraq president Michael Townsend has said.

Iraq has been keen to develop its oil assets in Kirkuk, especially since Baghdad’s hard-earned takeover of the oil-rich region from the Kurdistan Regional Government (KRG) in October last year as a fallout of the Kurdish independence referendum.

Iraq's Oil Minister Jabbar al-Luiebi has reportedly asked the North Oil Company, the operator of the Kirkuk oil fields, to accelerate efforts to tap into opportunities and boost production from its assets.

The North Oil Company currently produces around 700,000 barrels a day (b/d), and is looking to ramp up its production capacity to contribute more towards Iraq’s oil output which currently stands at around 4.3 million b/d.

As part of developing the Kirkuk region’s oil sector, the Oil Ministry also plans to start exporting its oil to Iran by the end of this month, as MEED had reported earlier.