“This MoU builds on bp’s strategic and longstanding relationship with Iraq. We see today’s signing as an important step towards the potential further development of this critically important area. It aligns with bp’s six clear priorities and is in support of our drive to deliver as a simpler, more focused, higher value company,” said Murray Auchincloss, bp chief executive officer.

The non-binding MoU was signed in a meeting between Iraq Prime Minister H.E. Mohammed Shia’ Al Sudani, H.E. Hayan Abdul Ghani, Deputy PM for Energy Affairs and Minister of Oil, and bp chief executive Murray Auchincloss, together with Nader Zaki, bp regional president for Middle East and North Africa, and Zaid Elyaseri, bp President Iraq.

Murray Auchincloss said: “This MoU builds on bp’s strategic and longstanding relationship with Iraq. We see today’s signing as an important step towards the potential further development of this critically important area. It aligns with bp’s six clear priorities and is in support of our drive to deliver as a simpler, more focused, higher value company”

The MoU signed for Kirkuk includes the Baba and Avanah domes and three adjacent fields – Bay Hassan, Jambur and Khabbaz – in Federal Iraq, that are operated by the Government of Iraq’s North Oil Company (NOC).

Rehabilitation of existing facilities, where required, and the construction of new facilities – including gas expansion projects – together with a drilling programme at the Kirkuk fields, has the potential to stabilize production and reverse decline, returning production from this nationally important oilfield to a growth path.

The integrated redevelopment programme has the potential to bring opportunity and investment into the Kirkuk region – unlocking future downstream growth while also bringing tangible benefits to the local population, with job creation and local supply requirements.  

As part of the MoU, bp also proposes to explore opportunities for investment into power generation and the introduction of solar power facilities to the region.

Negotiations are expected to be complete early in 2025.