bp brings ConocoPhillips into Kirkuk redevelopment
- ConocoPhillips to acquire a 42% interest in BP Energy Company of Kirkuk Limited (BP ECKL).
- Deal supports redevelopment of Kirkuk-area fields; bp will remain the majority shareholder after completion.
- Development and Production Contract targets more than 3 billion barrels of oil equivalent from Baba and Avanah domes and the adjacent Bai Hassan, Jambur and Khabbaz fields.
- Agreement to be signed during Iraqi Prime Minister Ali Al-Zaidi’s official visit to Washington DC; contract area includes additional exploration potential.
Deal overview
ConocoPhillips has agreed terms to acquire a 42% interest in BP Energy Company of Kirkuk Limited (BP ECKL), a move intended to support redevelopment of several large-scale oil fields in the Kirkuk area of northern Iraq. The partnership is to be signed as part of Iraqi Prime Minister Ali Al-Zaidi’s official visit to Washington DC. Following completion, bp will remain the majority shareholder in BP ECKL and a key participant in the contractor group.
Assets and contract scope
The Development and Production Contract covers an initial phase of oil and gas production of more than 3 billion barrels of oil equivalent from the Baba and Avanah domes of the Kirkuk oil field and the adjacent Bai Hassan, Jambur and Khabbaz fields in Federal Iraq. These fields are currently operated by the Northern Oil Company (NOC). The contract area also includes additional exploration potential.
Strategic rationale
bp framed the deal as bringing together complementary capabilities while reflecting a disciplined approach to capital allocation. CEO Meg O’Neill said Kirkuk is a “world-class resource base” that can support Iraq’s long-term energy ambitions and create value for the country and for bp. bp noted its relationship with Iraq spans more than a century, with decades of experience in both the north and south of the country.
Source: bp