Iraq signs contract with BP for development of Kirkuk oilfields; initial target is 328,000 bpd

Iraq's oil ministry announced on Thursday that it has signed a contract with BP for the development of Kirkuk oilfields. The initial production target is 328,000 barrels a day.

The agreement was signed in early this year and involves BP and Iraq's North Oil Company and North Gas Company working together to rehabilitate the Baba and Avana Domes of the Kirkuk Field, as well the Jambour Bai Hassan and Khabbaz field.

Iraq's Oil Minister Hayan Abdel Ghani stated in a press release that the contract has a target production of 328,000 barrels / day with future increases anticipated through field development.

He said that the contract was launched by setting the initial production rate to 328,000 barrels a day. Any increase above this will be achieved through development operations.

A senior Iraqi oil official said in February that BP expects to spend as much as $25 billion on the project over its lifetime.

Energy major was part of the oil consortium that discovered oil in Kirkuk during the 1920s. BP estimates that the Kirkuk oil field contains about 9 billion barrels recoverable.

The company has a 50% share in a joint-venture that operates the Rumaila oilfield, located in the southern part of the country. It has been there for over a century.

(source: Reuters)