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A source in the state-owned North Oil Company (NOC) revealed on Wednesday that representatives from British Petroleum (BP) arrived in the northern Iraqi governorate of Kirkuk to meet with NOC officials in the hope of finalizing an agreement to begin developing oil fields in the area.
The source told Shafaq News that the BP delegation held a meeting with NOC’s director to discuss the final agreement that would include the development of oil fields in northern Iraq.
BP’s CEO Murray Auchincloss revealed on Monday that the company hopes to come to a deal in the next months to develop Iraq’s enormous oil fields in Kirkuk.
Auchincloss said in a statement that he is thrilled about the possibility and intends to get a formal deal signed by the end of February, according to Energy Intelligence.
The Iraqi government is willing to collaborate and is offering extremely competitive conditions on the global market, according to Auchincloss.
In early August, the Iraqi government and BP signed a Memorandum of Understanding (MoU) to develop and rehabilitate four Kirkuk oil fields run by the NOC.
The MoU is an integral part of the Iraqi government’s endeavor to optimize energy sector investments in order to enhance and increase oil output, solar energy, and gas utilization.
BP also recommends investigating possible investments in local solar power facilities and electricity production.
In an attempt to attract more investment into the country’s hydrocarbon sector, Iraq has revised its strategy for collaborating with foreign oil firms for the first time in decades, according to sources who spoke to Reuters in mid-August.
Furthermore, BP is the main contractor at the enormous Rumaila oil field in the Basra governorate in southern Iraq, which produces almost one-third of the country’s crude oil.
