British Petroleum (BP) is set to finalize a landmark agreement to develop Iraq’s Kirkuk oil field in the coming months, according to CEO Murray Auchincloss. Speaking to Energy Intelligence, Auchincloss expressed optimism about securing the deal by the end of February, citing competitive terms and a stable security environment offered by the Iraqi government.

This anticipated agreement builds on a Memorandum of Understanding (MoU) signed in August between BP and the Iraqi government to rehabilitate and develop four oil fields in the Kirkuk region, managed by the North Oil Company (NOC). The collaboration is part of Iraq’s broader strategy to revitalize its energy sector, focusing on increasing oil production, advancing solar energy, and enhancing gas utilization.

The MoU also outlines BP’s interest in expanding its investments in power generation and renewable energy projects in the region. This marks a shift in Iraq’s approach to partnering with international oil companies, as the country seeks to attract more foreign investment into its energy sector.

Iraq’s oil sector has long been a cornerstone of its economy, and the potential development of the Kirkuk oil fields is expected to boost production capacity significantly. BP, already a major player in Iraq, serves as the lead contractor for the Rumaila oil field in Basra, which produces approximately one-third of the country’s total crude output.

The planned Kirkuk project reflects BP’s growing involvement in Iraq’s energy development efforts, with the company playing a critical role in aligning Iraq’s ambitions with global energy demands.

If finalized, the Kirkuk agreement could signal a new era of collaboration between Iraq and international energy firms, setting a precedent for future projects aimed at modernizing the country’s energy infrastructure.