ECONOMY
Iraqi Prime Minister Mohammed Shia' al-Sudani oversees the signing of a key agreement with British energy giant BP on February 25, 2025. Photo: Sudani’s office
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ERBIL, Kurdistan Region - British energy giant BP signed an agreement with the Iraqi government on Tuesday to rehabilitate four oil and gas fields in Kirkuk province, just weeks after reaching an initial deal.
The agreement was signed in Baghdad, in the presence of Iraqi Prime Minister Mohammed Shia' al-Sudani.
"This signing follows the agreement with the concerned company on technical issues and contractual terms, including the economic model of the project, based on the memoranda of understanding signed in London, during the Prime Minister [Sudani’s] recent visit to the United Kingdom," read a statement from Sudani's office.
In January, the Iraqi premier led a delegation on an official visit to London where they signed a memorandum of understanding (MoU) with BP to rehabilitate four oilfields in Kirkuk province.
"The visit aimed to ensure the best contractual terms and benefits for the Iraqi side after detailed and lengthy negotiations” to “optimally invest in energy and provide crude oil to northern refineries, reducing their reliance on southern oil,” Sudani’s office then noted. The latest agreement represents the final stage before the formal signing of the contract.
Back in January, the head of BP, Zaid Elyaseri told Rudaw that he believes “the project will have a great added value to Kirkuk province in particular, and neighboring governorates and Iraq in general.” He added that the four oil fields to be rehabilitated are Baba Avana, Bay Hasan, Jambour, and Khabbaz.
Kurdistan Region Prime Minister Masrour Barzani told Reuters in late January that “the region Baghdad is discussing with BP is a disputed territory and according to the constitution, disputed territories cannot be decided on unilaterally, by either Erbil or Baghdad.”
The fields are operated by the state-run North Oil Company, one of 16 companies under the Iraqi oil ministry, with its headquarters in Kirkuk.
However, the British ambassador to Baghdad, Stephen Hitchen, later indicated that the engagement “between the private company [BP] and the [Kurdistan] Region is a private issue” and “I have no doubt that the company will engage the Region and invest in the area in general.”
For his part, Kirkuk Governor, Rebwar Taha, said earlier this month that BP’s agreement with the Iraqi government will boost the local economy and create job opportunities for residents.
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