BP is closing in on a final contract for the re-development of Iraq’s Kirkuk oilfield. William Lin, the UK major’s Executive Vice President for Gas and Low Carbon Energy, said on 18 December that his firm has reached an agreement on technical terms, which he labeled “an important step toward a fully termed contract.” A BP statement adds that “a preliminary letter of agreement, marking a key milestone in negotiations,” was signed with Iraq’s Oil Minister Hayan Abdulghani in Baghdad. This follows an August MoU with Baghdad, with the pair re-engaging in negotiations to develop the field’s Baba and Avanah domes, as well as the neighboring Bai Hassan, Jambur and Khabbaz oil fields (MEES, 2 August).
BP CEO Murray Auchincloss struck an optimistic tone last month, saying that he aims to see the deal closed by February (MEES, 29 November). BP has a long history at Kirkuk, but earlier talks fell apart in 2020 following a three-year study initially commissioned in 2013, which was interrupted by the rise of the Islamic State in 2014. Since then, Baghdad has revamped its contract models, launching a ‘profit sharing’ Development and Production Contract (DPC) model intended to provide firms with improved profitability in comparison to Iraq’s traditional service contracts. (CONTINUED - 224 WORDS)