BP and Iraq to share profits on Kirkuk fields

Iraqi officials from the oil ministry said that BP will develop Iraq's Kirkuk gas and oil fields using a profit sharing model. A final agreement should be reached before the end of this calendar year.

Iraq and BP have signed a preliminary deal earlier this month for the development of four oil and natural gas fields in Kirkuk in northern Iraq. BP estimates that these fields contain about 9 billion barrels worth of recoverable crude oil.

Two officials confirmed that the oil ministry and BP - which is returning to Kirkuk after a five-year hiatus – are expected to sign a confidential agreement this week. After which, Iraq will give over the data package of Kirkuk's fields and installations.

The journalists spoke under the condition of anonymity, as they had not been authorized to speak in public.

BP didn't immediately respond to a comment request.

After its contract for 2013 expired, BP pulled out in late 2019. There was no agreement about the expansion of the field. (Reporting and writing by Aref Mohammad and Ahmed Rasheed, editing by Jason Neely & Barbara Lewis).

(source: Reuters)