«Kirkuk is a world-class resource base that can 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», said chief executive officer Meg O’Neill.
The Development and Production Contract covers an initial phase of oil and gas production of more than 3 billion barrels of oil equivalent from the Baba and Avanah domes of the Kirkuk oil field and the adjacent Bai Hassan, Jambur and Khabbaz fields in Federal Iraq, all currently operated by the Northern Oil Company (NOC). The contract area also includes additional exploration potential.
bp's relationship with Iraq spans more than a century and includes decades of experience in both the north and south of the country. Following completion of the transaction, bp will remain the majority shareholder in BP ECKL and a key participant in the contractor group.
Details from bp:
- the transaction is subject to any regulatory approvals;
- BPECKL is the Contractor under a Development and Production Contract with North Oil Company (NOC) and North Gas Company (NGC) of Iraq, covering the rehabilitation and redevelopment of several giant oil fields in Kirkuk;
- BP ECKL’s remuneration will be linked to incremental production volumes, price and costs;
- the JV will be accounted for as an equity accounted entity, with the partners booking a share of production and reserves proportionate to the terms agreed within the DPC;
- as BP ECKL is expected to operate as a joint venture, bp does not expect that it will require significant capital contributions from bp.
