Baghdad, Iraq – The Ministry of Oil provided details on Monday regarding the contract signed with BP to develop the Kirkuk oil fields.
According to Bassim Muhammed Khudair, Undersecretary for Extraction Affairs at the Ministry, the agreement will boost production from the fields to 420,000 barrels per day, with 85% of the workforce under the contract being Iraqi.
Khudair explained that the contract with BP, which focuses on developing and producing oil from four fields in Kirkuk Governorate, was signed under the guidance of Prime Minister Muhammed S. Al-Sudani. After months of negotiation, the deal aims to rehabilitate and expand the fields of Baba, Avana, Bai Hassan, Jambur, and Khabbaz.
Currently, these fields produce around 308,000 barrels per day, and the goal is to increase that figure to 420,000 barrels per day over the next eight years. The 25-year contract can be extended by five years.
The contract also covers the exploitation of associated gas from these fields, with a capacity of up to 400 million standard cubic feet per day over a 16-year period. BP will oversee the evaluation, rehabilitation, and expansion of the North Gas Company’s facilities, which will help reduce gas flaring.
Khudair also pointed out that there is a clause in the contract allowing future negotiations with BP regarding exploration in certain areas between the fields. The project will also provide social services to local communities, employ thousands of Iraqi workers, support local businesses, and include a training program to develop national engineering and technical expertise in cooperation with the North Oil and North Gas Companies.
He noted that BP, which has been involved in the Rumaila field since 2010, is familiar with the capabilities of Iraqi workers, which played a role in finalizing this contract. Approximately 85% of the workforce for the project will be Iraqi, with the remaining 15% being foreign experts. Over time, the proportion of foreign workers will decrease as more Iraqi talent is integrated into the project.
Khudair also explained that key roles for the project will require petroleum and chemical engineers, as well as graduates from relevant technical institutes. Local companies involved in the project will handle the employment process.
Finally, he highlighted BP’s commitment to building a 400-megawatt power plant to help strengthen the region’s energy infrastructure.
Khudair concluded by emphasizing Iraq’s pride in its national workforce, which will play a critical role in ensuring the success of the project by following international best practices and achieving the goals of Iraq’s oil and gas sector.
