BP has announced that it has signed a Letter of Intent (LoI) with Iraq’s federal government aimed at reviving Kirkuk oilfield
The deal, inked and confirmed by the UK oil and gas major and an Oil Ministry official, could give BP access to reserves in the north of Iraq.
The UK oil and gas giant is expected to pump US$100mn over an 18-month period into helping Iraq’s government assess the production in the oilfield.
According to the company, it will work on the Baghdad-administered side of the border on the Baba and Avana geological formations.
The agreement, however, is not a technical service contract like what BP has at Iraq’s Rumaila oilfield in the south of the country.
Reuters reported that the output at the 78-year-old Kirkuk oifield has slumped to around 280,000 bpd from 900,000 bpd in 2001
Federal government officials said they would like BP to raise production capacity to around 600,000 bpd in five years.
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