"BP" sets date to begin development work at North Oil company
Shafaq News/ A source at North Oil Company confirmed on Tuesday that alltechnical and engineering preparations have been completed at the oil fields inanticipation of British company BP commencing field development work by the endof this month.
The source told Shafaq News that "the agreement between North OilCompany and BP will come into effect before the end of this month to developthe oil fields in Kirkuk."
BP has submitted its initial plan, which includes conducting surveys,preparing wells with reduced output, and working to increase production levels.
According to the plan, four oil fields will undergo rehabilitation anddevelopment: the two domes of Kirkuk (Baba and Afana), Bai Hassan, Jambur, andKhabbaz. There is also the possibility of agreeing on additional fields, with afocus on optimal energy investment to enhance oil and gas production, includingsolar energy.
The source emphasized that "North Oil Company has begun implementing anaction plan to increase the production of its oil fields and has completedseveral technical tasks, including connecting wells at Bai Hassan field,developing the pipeline network at Afana field, and repairing damaged pipes atthe Shuraw station. A drilling and reclamation plan has been executed, withwork deadlines set for a short time frame”.
The company has also established a new 14,000-barrel tank at the Sarlo gasseparation station, one of the most important gas stations in the company,completing all pipeline connections, and linking the flare system. Some pipeswere replaced due to corrosion and wear, with the necessary materials provided.
The source added that "the company successfully connected an oil welland reactivated 16 other wells at Bai Hassan field as part of its efforts torehabilitate operational stations and increase production capacity."
On August 1, 2024, Prime Minister Mohamed Shiaa Al-Sudani oversaw thesigning of a comprehensive oil memorandum of understanding between the Ministryof Oil and BP to develop Kirkuk fields.
The agreement was signed by Iraqi Deputy Prime Minister for Energy Affairsand Oil Minister Hayan Abdul Ghani, and BP CEO Murray Auchincloss.
In this context, economic expert Ali Khalil confirmed that "thecontract with BP obligates the company to increase oil production at the Kirkukfields, which currently produce about 325,000 barrels per day, with an aim toraise production to 650,000 barrels per day."
He added to Shafaq News that the contract includes a 3D seismic study of thefield reservoir, as well as utilizing associated gas from North Oil Companyfields, establishing power stations, and connecting them to the company, all outlinedin the signed contract.
On November 27, 2024, Kirkuk Governor Rybwar Talab disclosed that BP wouldbegin development work at North Oil Company fields early next year, noting thatthis would contribute significantly to the development of the oil and gasindustry in the governorate.
In a statement to Shafaq News, Talab said, "BP’s presence in Kirkuk iscrucial and will yield financial benefits and job opportunities for youngpeople, as 96% of the workforce at the Rumaila field in Basra, operated by BP,consists of Iraqis."
He also emphasized that the local government in Kirkuk is highly committedand will strongly support this project, as it will significantly develop theoil fields.
This project marks the first significant investment project in years.
