On Thursday, Iraq announced a preliminary agreement with British energy giant BP to advance the development of the Kirkuk oil and gas fields.
The deal was formalized in Baghdad between Iraq’s Oil Minister Hayan Abdel-Ghani and BP’s CEO Murray Auchincloss.
Development of Major Oil and Gas Fields
Under this significant agreement, BP will undertake the task of developing four crucial oil and gas fields in the Kirkuk region.
These fields include Kirkuk, Bai Hasan, Jambour, and Khabbaz. The partnership aims to implement a comprehensive plan to significantly increase the output capacity of both crude oil and natural gas from these fields.
Historical Significance of the Kirkuk Field
The Kirkuk field, discovered in 1927, holds a prominent place in Iraq’s oil industry history as the site where the industry was initially established. This region has long been a cornerstone of Iraq’s oil production.
Iraq’s Oil Production Capacity
Currently, Iraq stands as the second-largest oil producer within the Organization of the Petroleum Exporting Countries (OPEC), following Saudi Arabia.
The country has the capability to produce nearly 5 million barrels of oil per day. This new agreement with BP is expected to further bolster Iraq’s production capabilities and reinforce its position in the global oil market.