ConocoPhillips said on Friday it had agreed to acquire a 42% stake in BP Energy Company of Kirkuk Ltd from BP, joining the British oil major in redeveloping four producing oilfields in northern Iraq.
The agreement is expected to be signed during Iraqi Prime Minister Ali al-Zaidi’s official visit to Washington, where he is seeking greater U.S. investment in Iraq’s oil, gas and power sectors following disruptions caused by the conflict involving Iran.
The contract covers more than 3 billion barrels of oil equivalent in initial gross recoverable resources, with additional exploration potential, across the Baba and Avanah domes of the Kirkuk oilfield and the Bai Hassan, Jambur and Khabbaz fields.
The transaction comes as BP reshapes its portfolio under CEO Meg O’Neill, who took over in April after a long career at Exxon Mobil.
O’Neill has pledged to simplify the company, tighten capital discipline and focus investment on its highest-return oil and gas assets while recycling capital through selective partnerships and asset sales.
For Iraq, this is another effort to attract greater U.S. investment into a sector that has increasingly been dominated by Chinese companies in recent years.
Zaidi’s cabinet recently approved a deal with U.S.-based HKN Energy to develop the Himreen oilfield in northern Iraq and cleared a cooperation agreement with General Electric to expand the country’s power generation and transmission.
The Kirkuk field, discovered about a century ago, remains one of Iraq’s oldest producing oilfields and still holds significant remaining reserves, making it central to Baghdad’s plans to sustain crude output over the coming decades.
BP said the deal would not affect the contract terms, the operator roles of Iraq’s Northern Oil and North Gas companies, or the planned handover of operatorship to an entity staffed mainly by their personnel.
The companies said the joint venture is not expected to require significant capital contributions.
The deal is expected to close by the end of 2026.
(Reporting by Pranav Mathur in Bengaluru; Editing by Anil D’Silva and Vijay Kishore)