BP revives quest for Kirkuk oil deal

ERBIL - Iraq has signed a memorandum of understanding with BP that could lead to the rehabilitation and development of four fields in Kirkuk.

BP CEO Murray Auchincloss traveled to Baghdad for a signing ceremomy Thursday with Oil Minister Hayyan Abdulghani, which was attended by Prime Minister Mohammed Shia al-Sudani, according to a statement from the prime minister's office.

If the provisional agreement leads to a binding contract, it would promise to help Iraq reverse the decades-long decline of multiple giant fields that have suffered from insufficient maintenance and investment and are currently producing just over 200,000 bpd, which is far below their potential.

"The next step is that a technical committee will be formed to engage in talks with BP on the technical and financial sides of a potential contract," said a senior official at the state-run North Oil Company (NOC), which oversees the Kirkuk-area fields covered by the new MoU.