BP launches development plan for Iraq's North Oil, Gas Companies
Shafaq News – Kirkuk
Experts from the British company BP have begun work to develop the infrastructure and production facilities of the state-owned North Oil and North Gas companies, sources from both companies told Shafaq News on Wednesday.
The sources explained that an evaluation process of the companies’ fields in Kirkuk has started, as a prelude to a long-term development plan that aims to increase production levels and improve extraction efficiency.
Last February, the Iraqi Ministry of Oil signed an agreement with BP to develop four of the largest oil and gas fields in Kirkuk—Baba, Awana, Bai Hassan, Jambur, and Khabbaz. The Iraqi government at the time estimated the investment to be between $20 and $25 billion.
According to the ministry, the agreement includes preparing advanced technical and geological studies, using modern technologies in reservoir management, preventing the flaring of associated gas, rehabilitating old facilities, and training Iraqi staff to improve their technical efficiency.
Current production data from the Ministry indicates that Kirkuk's fields currently produce between 285,000 to 330,000 barrels per day, with Most of this for local consumption, while limited quantities are exported to Jordan. Through this partnership, Baghdad aims to gradually increase output by 50,000 to 100,000 barrels per day in the coming years, as part of a national plan to boost overall production capacity to more than 6 million barrels per day by 2029, up from the current level of about 4 million.
As for gas, the North Gas Company produces about 410 million standard cubic feet of associated gas daily. It had increased its supplies to power stations by 50 million standard cubic feet per day last year, a step aimed at reducing reliance on imports and enhancing national energy security.
The sources explained that BP had completed preliminary surveys of a number of oil fields, and within the coming days, the first phase of survey work for the North Oil Company would be completed. This would be followed by a transition to the North Gas Company to conduct development work to increase its production and improve its infrastructure.
In the same context, oil expert Abbas Mahmoud told Shafaq News agency that BP will inject between $25 and $30 billion into the development of both companies. He described this as a huge investment that will create a qualitative leap in the oil sector in northern Iraq.
