ECONOMY
Iraqi Oil Minister Oil Minister Hayyan Abdul Ghani oversaw signing the activation of a contract between British BP, North Oil Company (NOC), and North Gas Company (NGC) in Baghdad on Thursday, October 2, 2025. Photo: Iraq's oil ministry
ERBIL, Kurdistan Region - Iraq on Thursday officially activated a contract with British energy giant BP to develop four key oil fields in Kirkuk and rehabilitate associated gas facilities. Baghdad views the push as crucial to boost national production and enhance gas utilization to support electricity generation.
The agreement, initially signed seven months ago, covers the Avana, Bay Hasan, Jambour, and Khabbaz fields. It was signed through Iraq’s state-run North Oil Company (NOC) and North Gas Company (NGC), which are responsible for the exploration, production and management of oil and gas resources in the Kurdistan Region and surrounding areas.
Iraqi Oil Minister Hayyan Abdul Ghani, who oversaw the activation of the contract between BP, NOC and NGC, remarked, "Today we celebrate the activation of Kirkuk's four fields development contract, which is one of the promising contracts aimed at developing fields in Kirkuk, as well as the rehabilitation of the facilities of the [NGC]."
Abdul Ghani was further quoted by his ministry as adding that "fixing the initial production rate at 328,000 barrels per day [bpd] is a start for the contract,” with room for future increases through ongoing development.
“We hope that through this contract the production of crude oil will increase,” he said.
Zaid Elyaseri, BP’s head in Iraq, hailed the activation of the contract as a “major step to promote genuine cooperation and partnership” with NOC and NGC to “develop the oil fields in Kirkuk."
The activation follows a memorandum of understanding (MoU) signed in London earlier this year during a visit by Iraqi Prime Minister Mohammed Shia’ al-Sudani, aimed at deepening cooperation with BP.
The development comes months after Iraqi Prime Minister Mohammed Shia’ al-Sudani in January led a high-profile delegation to London, and signed a memorandum of understanding (MoU) with BP for the rehabilitation of these four oilfields in Kirkuk.
The effort further presents a part of Baghdad’s broader strategy to attract international investment, diversify its energy sector, and expand oil production.
On Wednesday, the Iraqi oil minister told Rudaw that the country aims to increase daily oil output from 4.4 million bpd to 5.5 million bpd by the end of the year.
In parallel, the Iraqi government is also pursuing alternative energy sources, focusing on boosting domestic production and forging new energy partnerships with Gulf countries.
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