27/07/2026 by Jay Hatton
UK-based oil major BP has announced that it has agreed a deal for ConocoPhillips to buy a substantial stake in the BP Energy Company of Kirkuk Limited (BP ECKL).
BP has a development and production contract (DPC) with Iraq to revitalise a number of fields that the Northern Oil Co. (NOC) currently operates.
The DPC’s initial phase will involve producing three billion barrels of oil equivalent in oil and gas from the Bai Hassan, Khabbaz and Jambur fields in Federal Iraq and the Kirkuk oil field’s nearby Avanah and Baba domes. There is also the potential for further exploration in the contracted area.
Meg O’Neill, who took over as chief executive officer of BP this year, said that the oil fields in Kirkuk provide an excellent basis to:
“…support Iraq’s long-term energy ambitions while creating value for both the country and BP. This partnership with ConocoPhillips brings together two great teams and positions us well for the next phase of redevelopment. We’re being deliberate about where we invest, backing high-quality resources that can deliver long-term value for our shareholders.”
BP, the owner of the Castrol coolant and metalworking brand, will retain a majority interest, with ConocoPhillips acquiring a 42% interest for an undisclosed sum. According to BP, the partnership will synergistically combine the two companies’ respective expertise and capabilities. It says it also reflects its ongoing capital discipline.
Under the DPC, BP ECKL will be remunerated based on increases in production volumes alongside costs and price. The deal is subject to relevant regulatory approvals prior to completion.
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