Iraq prepares to hand over Kirkuk oil fields to BP for development
Shafaq News/North Oil Company (NOC) has begun preparing oil wells in Kirkuk Governorate toramp up production levels ahead of handing over the fields to British energy giantBP for development, a company source said on Friday.
The sourcetold Shafaq News Agency, “NOC has initiated a work plan to maximize productionfrom the Kirkuk, Bai Hassan, Jambur, and Khabbaz fields before transferringthem to BP, which has been contracted to enhance their output.”
The sourceadded that the company's field division has been tasked with executing adrilling and rehabilitation plan this year, alongside well-activationactivities without rigs. "The company aims to speed up the preparation ofwell sites, coordinating with the project division to complete each site withinthree weeks."
In addition,the company is laying pipelines and completing connections for wells Bai Hassan198 and 199, with a target to finish within a month. “Five well valves in theKhabbaz oil field are being connected, and damaged pipelines at the Shorawstation in Baba Dome are being repaired as part of the company’s efforts tostabilize production levels in northwest Avana, according to projected plansfor the Kirkuk oil field.”
The sourcenoted that NOC is expected to complete all requirements for BP within threeweeks to a month. A meeting with BP representatives is scheduled to finalizethe next steps for implementing the agreement aimed at boosting NOC’sproduction capacity.
Economicexpert Ali Khalil told Shafaq News Agency, “The contract between the Iraqigovernment, through the Ministry of Oil, and BP must ensure that the Britishcompany delivers tangible results in terms of increased production within aspecific timeframe.”
Khalilpointed out that BP had a prior contract with NOC, signed in 2013, valued at$100 million, which ended in January 2020. “The previous contract included 3Dseismic studies of the reservoir, building on existing 2D data. Estimatessuggest the Kirkuk field contains about nine billion barrels of recoverableoil,” he added.
On August 1,Prime Minister Mohammed Shia Al-Sudani oversaw the signing of a comprehensiveoil memorandum of understanding between Iraq’s Ministry of Oil and BP todevelop the Kirkuk fields for oil and gas production. Iraqi Deputy PrimeMinister and Oil Minister Hayan Abdul-Ghani signed the agreement, while BP’sCEO Murray Auchincloss represented the British company.
Thememorandum covers the rehabilitation and development of four NOC fields inKirkuk—Kirkuk (Baba and Avana Domes), Bai Hassan, Jambur, and Khabbaz. It alsoopens the door for potential agreements on other fields or exploration blocks,with both parties seeking to maximize energy opportunities in the region to boostoil output and invest in gas and solar energy projects.
