bp and ConocoPhillips have agreed terms for ConocoPhillips to acquire a 42 per cent interest in BP Energy Company of Kirkuk Limited (BP ECKL), supporting the redevelopment of several large-scale oil fields in the Kirkuk area of northern Iraq.
The partnership, to be signed as part of the official visit
of Iraqi Prime Minister Ali Al-Zaidi to Washington DC, brings together
complementary capabilities and expertise, while reflecting bp's disciplined
approach to capital allocation.
Meg O’Neill, Chief executive officer, said: “Kirkuk is a
world-class resource base that can support Iraq’s long-term energy ambitions
while creating value for both the country and bp. This partnership with
ConocoPhillips brings together two great teams and positions us well for the
next phase of redevelopment. We’re being deliberate about where we invest,
backing high-quality resources that can deliver long-term value for our
shareholders."
The Development and Production Contract covers an initial
phase of oil and gas production of more than 3 billion barrels of oil
equivalent from the Baba and Avanah domes of the Kirkuk oil field and the
adjacent Bai Hassan, Jambur and Khabbaz fields in Federal Iraq, all currently
operated by the Northern Oil Company (NOC).
The contract area also includes additional exploration
potential.
bp's relationship with Iraq spans more than a century and
includes decades of experience in both the north and south of the country.
Following completion of the transaction, bp will remain the majority shareholder in BP ECKL and a key participant in the contractor group. -OGN/TradeArabia News Service
