Economic estimates revealed that planned investments by the British company BP in developing several giant oil fields in Iraq’s Kirkuk governorate could reach $25 billion. These investments encompass projects in the oil, gas, electricity, and water sectors, boosting development prospects in the region.
Iraqi oil and gas expert Ali Khalil was quoted as saying that the anticipated agreement with Iraq’s Ministry of Oil will revitalize production at North Oil Company, which has faced significant challenges since the 2014 ISIS invasion and subsequent economic stagnation. Khalil explained that the contract, valued at approximately $25 billion, will support the development of North Gas Company, the construction of solar-powered electricity stations, and enhanced exploration in the area.
Khalil noted that BP’s investments aim to increase crude oil production from Kirkuk fields by 150,000 barrels per day, bringing total production to at least 450,000 barrels per day within two to three years. Kirkuk fields had previously experienced a sharp decline in output, ranging between 600,000 and 725,000 barrels per day from 2005 to 2010, with exports of about 500,000 barrels per day to Turkey’s Ceyhan port. By 2014, production fell to between 400,000 and 500,000 barrels per day, later deteriorating to between 250,000 and 325,000 barrels per day due to declining well efficiency.
In December of the previous year, BP reached an agreement on technical terms for developing Kirkuk’s oil fields, followed by an announcement on February 25, 2025, confirming all contractual terms, with the official signing occurring on March 10, 2025. Deputy Prime Minister for Energy Affairs and Oil Minister Hayyan Abdul Ghani described the signing as a “major achievement” for both the ministry and the company. He affirmed that development and rehabilitation efforts will boost national production, increase gas investments and output to support electricity generation, and noted that the ministry aims to leverage oil and gas resources to enhance federal budget revenues.
The contract includes the rehabilitation and development of four oil fields in Kirkuk: Baba Gurgur, Avanah, Baba Hassan, Jambur, and Khabbaz. Last week, a BP delegation visited North Oil Company’s headquarters to finalize the necessary steps for rehabilitating these fields. Notably, BP was part of the consortium that discovered oil in Kirkuk in the 1920s and signed a letter of intent in 2013 to study field development, though the plan stalled in 2014 after ISIS seized parts of northern and western Iraq.
