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Iraq and BP strategy to develop Kirkuk oil and gas fields, Iraqi PM's workplace states

Iraq has signed a preliminary arrangement with Britain's BP to establish the northern Kirkuk oil and gas fields, the Iraqi prime minister's workplace said on Thursday.

Under the offer, which was checked in Baghdad between Iraq's. oil minister Hayan Abdel-Ghani and BP CEO Murray Auchincloss, BP. will develop four oil and gas fields in the Kirkuk region, the. statement from the Iraqi prime minister's workplace said.

BP and Iraq's oil ministry checked in 2013 a letter of intent. to study the advancement of the giant Kirkuk oilfield.

Kirkuk is estimated to include about 9 billion barrels of. recoverable oil, according to BP.

However that offer was postponed in 2014 when the Iraqi army. collapsed in the face of Islamic State's sweeping advance in. northern and western Iraq, allowing the Kurdish regional. federal government (KRG) to take control of the Kirkuk area.

BP will start drawing up a significant plan to increase output. capability of petroleum and gas from Kirkuk, Bai Hasan, Jambour. and Khabbaz fields, Iraq oil ministry officials stated.

The Kirkuk field's tank was discovered in 1927 and is. where Iraq's oil industry was founded.

Iraq, the second most significant producer in the Company of the. Petroleum Exporting Countries behind Saudi Arabia, currently has. the capability to produce almost 5 million barrels daily.

Rehabilitation of existing facilities, where needed, and. the building and construction of new facilities-- including gas expansion. projects together with a drilling programme at the Kirkuk. fields, has the potential to support production and reverse. decrease, the BP statement added.

Negotiations over the preliminary arrangement are anticipated to. be complete early in 2025, said BP.

Baghdad regained full control of the deposit from the. local federal government in 2017 after a stopped working Kurdish independence. referendum, at which point BP resumed its research studies on the field.

In late 2019, BP pulled out of the oilfield in the north of. the country after its 2013 service agreement ended with no. agreement on the field's expansion.

(source: Reuters)