British oil and gas major bp has reached an agreement with Turkey’s national oil company, Türkiye Petrolleri Anonim Ortaklığı (TPAO), for the state-owned producer to acquire a 15 per cent stake in its northern Iraq redevelopment venture.
The transaction involves BP Energy Company of Kirkuk Limited (BP ECKL), the entity leading the rehabilitation and redevelopment of key oil and gas fields across the Kirkuk region.
The deal formalises a cooperation agreement inked between the two energy companies in February.
The move follows ConocoPhillips acquiring a 42 per cent interest in BP ECKL. Upon regulatory approval and completion, bp will retain majority ownership with a 43 per cent stake, while ConocoPhillips and TPAO will hold 42 per cent and 15 per cent respectively.
bpP CEO Meg O’Neill highlighted the decades-long relationship between the companies and the importance of the Iraqi assets.
“TPAO has been a trusted partner for more than 30 years through our work together across the Caspian region,” O’Neill said.
“This agreement builds on that long-standing relationship and, alongside our partnership with ConocoPhillips, positions us strongly for the next phase of redevelopment in Kirkuk. Kirkuk is a world-class resource base that can support Iraq’s long-term energy ambitions.”
The development and production contract encompasses an initial production target exceeding three billion barrels of oil equivalent.
Operations focus on the Baba and Avanah domes of the main Kirkuk field, alongside the adjacent Bai Hassan, Jambur and Khabbaz fields in Federal Iraq. The contract area also features additional exploration potential.
The fields are currently operated by Iraq’s North Oil Company and North Gas Company, with plans to transition operations to a joint organisation primarily staffed by local personnel. Under the contract, BP ECKL’s remuneration remains tied to incremental production, prices, and costs.
The joint venture will be accounted for as an equity accounted entity, with the partners booking a share of production and reserves proportionate to the terms agreed within the DPC.
As BP ECKL is expected to operate as a joint venture, bp does not expect that it will require significant capital contributions from bp.
