ConocoPhillips has reached an agreement with British energy giant bp to acquire a 42 per cent stake in BP Energy Company of Kirkuk Limited (BP ECKL), expanding its international portfolio into four large-scale, producing oil fields in northern Iraq.
The transaction centres on BP ECKL’s Development and Production Contract (DPC), which encompasses the historically prolific Baba and Avanah domes of the Kirkuk oil field, alongside three adjacent fields in Federal Iraq: Bai Hassan, Jambur, and Khabbaz.
The contract area holds an estimated initial gross recoverable resource exceeding three billion barrels of oil equivalent, with substantial potential for further exploration upside.
Under the joint venture, operations will focus on extensive field rehabilitation, redevelopment, and infrastructure optimisation to bolster recovery from the existing production base.
“This unique redevelopment opportunity is well aligned with our disciplined investment framework, providing access to a material, high-quality and long-life resource base, comfortably meeting our cost of supply threshold,” said Ryan Lance, Chairman and CEO of ConocoPhillips.
“Consistent with our focus on capital discipline, we see an opportunity to create value through a capital-efficient redevelopment programme that leverages a large existing production base, while also offering meaningful exploration upside.”
The acquisition is scheduled to close by the end of 2026, subject to regulatory clearances and standard closing conditions, with an effective commercial date of July 1.
“Kirkuk is a world-class resource base that can support Iraq’s long-term energy ambitions while creating value for both the country and bp,” said bp CEO Meg O’Neill.
“This partnership with ConocoPhillips brings together two great teams and positions us well for the next phase of redevelopment.
“We’re being deliberate about where we invest, backing high-quality resources that can deliver long-term value for our shareholders.”
Following completion, ConocoPhillips will account for the BP ECKL joint venture as an equity affiliate. The structure means the Texas-headquartered producer does not expect the venture to demand significant direct capital contributions.
Remuneration for the energy giant will instead be tied directly to a proportionate share of incremental production and operational costs.
bp will remain the majority shareholder in BP ECKL and a key participant in the contractor group.
