ConocoPhillips has reached an agreement with BP to acquire 42% of BP Energy Company of Kirkuk, the subsidiary responsible for managing the exploitation of several large oil fields in the Kirkuk region, in northern Iraq. The operation, with which both companies aim to reactivate the country's oil production, will be formalized during the official visit to the United States of the Iraqi Prime Minister, Ali al Zaidi.
BP holds the development and production contract for hydrocarbons over a capacity exceeding 3,000 million barrels of oil from the Baba and Avanah domes of the Kirkuk field, as well as from the nearby Bai Hassan, Jambur, and Khabbaz fields in Iraqi territory.
Through this transaction, the two multinationals in the sector are initiating a joint plan for rehabilitation, modernization, and optimization of the Kirkuk assets with the aim of increasing extractive activity in the area.
The purchase is expected to be completed by the end of the year, once the relevant regulatory approvals have been obtained and the usual closing conditions have been met. After the completion of the operation, BP will maintain its position as the controlling shareholder of the subsidiary.
"Kirkuk is a top-tier resource base that can support Iraq's long-term energy ambitions while generating value for both the country and BP. This alliance with ConocoPhillips brings together two great teams and positions us favorably for the next phase of development. We are being very careful in our investments, betting on high-quality resources that can generate long-term value for our shareholders," said BP's CEO, Meg O'Neill.
"We see an opportunity to create value through an efficient capital redevelopment program that leverages a large existing production base while offering significant exploration potential. We look forward to working with BP and the Government of Iraq to support the continued revitalization of these historically significant fields in a key region for energy production," emphasized ConocoPhillips' President and CEO, Ryan Lance.