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BP deal aims to revamp Kirkuk energy sector

Iraq is once again leveraging upstream development to finance gas and power projects.
Iraqi Prime Minister Mohammed Shia al-Sudani (standing, center), BP CEO Murray Auchincloss (standing, left), and Oil Minister Hayyan Abdulghan (standing, right) oversee the signing of a deal for BP to rehabilitate Kirkuk oil fields and build gas processing and power generation infrastructure at a ceremony in Baghdad on March 26, 2025. (Photo credit: Prime Minister's Office)
Staff of Iraq Oil Report
Thursday, May 1st, 2025

KIRKUK - Kirkuk's energy sector is set to receive a long-overdue injection of investment to rehabilitate reservoirs, modernize operations, and improve gas capture and power supply following Iraq's signing of a $26 billion deal with BP.

In recent interviews with Iraq Oil Report about the agreement, multiple Iraqi officials confirmed details that have not previously been publicized. They paint a picture of a deal that appears similar to the Oil Ministry's engagement with TotalEnergies in Basra: a suite of projects structured to leverage a major international oil company's interest in upstream development to achieve not only crude production gains but also improvements in associated gas processing and electricity generation.

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