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BP, Iraq agree on technical terms to redevelop Kirkuk oil fields

British oil major BP stated on Thursday it has actually reached a deal with the Iraqi government on the technical terms to redevelop the Kirkuk oil and gas fields.

The business had actually signed an arrangement with the Iraqi federal government in August to establish and check out the Kirkuk oilfield in the north of the nation, which will also consist of building power plants and solar capacity.

Unlike historical contracts that provide foreign companies razor-thin margins, the brand-new agreements are expected to consist of a. more generous profit-sharing model, sources have informed Reuters.

Iraq, the second-largest oil producer in the Organization of. the Petroleum Exporting Countries after Saudi Arabia, has the. capacity to produce nearly 5 million barrels per day.

BP was a member of the consortium of oil companies that. discovered oil in Kirkuk in the 1920s. BP has actually estimated the. Kirkuk field holds about 9 billion barrels of recoverable oil.

Today's signing is an essential step toward a completely described. agreement, BP executive vice president William Lin said in a. declaration. The company stated negotiations are expected to. complete early in 2025.

The business holds a 50% stake in a joint venture operating. the giant Rumaila oilfield in the south of the country, where it. has been running for a century.

(source: Reuters)