BP sets date to begin development work at Iraq’s North Oil company

Shafaq News/ A source at North Oil Company confirmed on Tuesday that all technical and engineering preparations have been completed at the oil fields in anticipation of British company BP commencing field development work by the end of this month.

The source told Shafaq News that "the agreement between North Oil Company and BP will come into effect before the end of this month to develop the 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 and development: the two domes of Kirkuk (Baba and Afana), Bai Hassan, Jambur, and Khabbaz. There is also the possibility of agreeing on additional fields, with a focus on optimal energy investment to enhance oil and gas production, including solar energy.

The source emphasized that "North Oil Company has begun implementing an action plan to increase the production of its oil fields and has completed several technical tasks, including connecting wells at Bai Hassan field, developing the pipeline network at Afana field, and repairing damaged pipes at the Shuraw station. A drilling and reclamation plan has been executed, with work deadlines set for a short time frame”.

The company has also established a new 14,000-barrel tank at the Sarlo gas separation station, one of the most important gas stations in the company, completing all pipeline connections, and linking the flare system. Some pipes were replaced due to corrosion and wear, with the necessary materials provided.

The source added that "the company successfully connected an oil well and reactivated 16 other wells at Bai Hassan field as part of its efforts to rehabilitate operational stations and increase production capacity."

On August 1, 2024, Prime Minister Mohamed Shia Al-Sudani oversaw the signing of a comprehensive oil memorandum of understanding between the Ministry of Oil and BP to develop Kirkuk fields.

The agreement was signed by Iraqi Deputy Prime Minister for Energy Affairs and Oil Minister Hayan Abdul Ghani, and BP CEO Murray Auchincloss.

In this context, economic expert Ali Khalil confirmed that "the contract with BP obligates the company to increase oil production at the Kirkuk fields, which currently produce about 325,000 barrels per day, with an aim to raise production to 650,000 barrels per day."

He added to Shafaq News that the contract includes a 3D seismic study of the field reservoir, as well as utilizing associated gas from North Oil Company fields, establishing power stations, and connecting them to the company, all outlined in the signed contract.

On November 27, 2024, Kirkuk Governor Rebwar Taleb disclosed that BP would begin development work at North Oil Company fields early next year, noting that this would contribute significantly to the development of the oil and gas industry in the province.

In a statement to Shafaq News, Taleb said, "BP’s presence in Kirkuk is crucial and will yield financial benefits and job opportunities for young people, 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 committed and will strongly support this project, as it will significantly develop the oil fields.

This project marks the first significant investment project in years.