Revamping Iraq’s Oil Industry with BP Partnership
As Iraq strives to accelerate the growth of its oil industry, a groundbreaking partnership with BP is set to redefine the country’s energy sector. Moving away from conventional service contracts, Iraq is now offering profit-sharing models to attract major Western corporations like BP.
BP, returning after a five-year hiatus, has signed a preliminary agreement with Iraq to develop the Kirkuk oil and gas fields, estimated to hold 9 billion barrels of recoverable oil. The deal includes the development of four key fields in northern Iraq.
Under the new profit-sharing model, Iraq and BP are expected to sign a final agreement by the end of the year, paving the way for production growth and operational enhancements in Kirkuk. With the potential to produce almost 5 million barrels per day, Iraq’s oil industry is poised for a significant transformation.
By revitalizing existing facilities and implementing strategic measures, BP aims to stabilize production levels and reverse the decline in Kirkuk. This partnership signifies a major milestone in Iraq’s quest for rapid development and marks a promising chapter in the country’s oil industry.
(Source: Reuters)