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The Iraq Ministry of Oil has signed a memorandum of understanding (MoU) with British oil major BP to boost oil fields’ production capacity in the northern Kirkuk.
The deal comes as the government seeks to restore output and ramp up production at the oil-rich region. after Iraq regained the control of the area in October 2017.
Days after the takeover of the Kirkuk region. Iraq Oil Minister Jabar al-Luaibi had initiated negotiations with BP to restore production at the oil fields. reported Reuters.
As per the MoU. BP will study ways to increase production from the oil fields in Kirkuk to 750.000 barrels a day.
Said to be the country’s oldest field. the Kirkuk deposits are estimated to hold about 9 billion barrels of recoverable oil.
BP CEO Michael Townsend said that the company will undertake seismic survey operations and studies to develop the oil fields of Kirkuk.
Earlier. BP has provided technical assistance for the redevelopment of the Kirkuk fields for the Iraq’s state-run North Oil
The Kirkuk’s fields including Bai Hassan and Avana currently pump 140.000 to 150.000 barrels a day. which is supplied to local refineries. a person familiar with the situation told Bloomberg.
Iraq. which is said to be the second largest producer after Saudi Arabia in the Organization of Petroleum Exporting Countries. is planning to commence trucking crude from Kirkuk to Iran by the end of the month.
