Energy giant BP withdraws from four Kirkuk oil, gas fields; NOC takes over amid regional war

ERBIL, Kurdistan Region - Iraq’s state-run North Oil Company (NOC) has assumed responsibility for operating four major oil and gas fields in the oil-rich city of Kirkuk after British energy giant BP withdrew its staff for safety reasons following the outbreak of a regional war involving the United States, Israel, and Iran.

The decision came after an official decree issued on March 7 by the chief executive of the North Oil Company authorizing the firm to operate the key fields of Avana, Bay Hasan, Jambour, and Khabbaz for a period of one year.

“The decision was made on the very same day BP employees withdrew,” a North Oil Company official told Rudaw on condition of anonymity due to the sensitivity of the matter.

According to the decision, the NOC will carry out all operations at the four fields, including essential operational requirements and joint production duties, during the one-year period in BP’s absence.

The official said the company’s move to take over the fields was intended to prevent potential disruptions and mitigate any negative consequences resulting from BP’s withdrawal.

In early October, Iraq officially activated a contract with BP to develop the four Kirkuk fields and rehabilitate associated gas facilities - an initiative Baghdad has repeatedly described as critical for boosting national oil production and improving gas utilization to support electricity generation.

The agreement was initially signed in March 2025 through Iraq’s state-run North Oil Company and the North Gas Company (NGC), which are responsible for the exploration, production, and management of oil and gas resources in northern Iraq.

The project forms part of Baghdad’s broader strategy to attract international investment, diversify its energy sector, and expand oil output.

BP is expected to spend up to $25 billion over the lifetime of the project to redevelop the fields, a senior Iraqi oil official told Reuters in February last year.

The 16-year contract aims to increase oil production by 500,000 barrels per day and expand gas investment by 400 million cubic feet per day across the four key fields in Kirkuk.

Hastyar Qadir contributed to this article from Erbil