(WO) — bp has agreed to bring Türkiye Petrolleri Anonim Ortaklığı (TPAO) into its Kirkuk redevelopment project in northern Iraq, with the Turkish national oil company acquiring a 15% interest in BP Energy Company of Kirkuk Limited (BP ECKL).
The agreement, signed during Iraqi Prime Minister Ali Al-Zaidi’s official visit to Türkiye, builds on a strategic cooperation memorandum of understanding signed by bp and TPAO earlier this year. The transaction follows ConocoPhillips’ previously announced acquisition of a 42% interest in BP ECKL. Upon completion, bp will retain a 43% interest, alongside ConocoPhillips (42%) and TPAO (15%), subject to regulatory approvals.
The Development and Production Contract covers an initial phase targeting more than 3 Bboe from the Baba and Avanah domes of the Kirkuk oil field, as well as the adjacent Bai Hassan, Jambur and Khabbaz fields in federal Iraq. The contract area also includes additional exploration potential.
The redevelopment is being carried out under a contract with Iraq’s North Oil Company (NOC) and North Gas Company (NGC), which currently operate the fields. Under the development plan, operatorship will eventually transition to an unincorporated organization staffed primarily by NOC and NGC personnel.
“TPAO has been a trusted partner for more than 30 years through our work together across the Caspian region,” said bp CEO Meg O’Neill. “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.”
The project is structured so that partner remuneration will be linked to incremental production, commodity prices and project costs, with each company booking production and reserves in proportion to the terms of the development contract.
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