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Iraq, BP sign Kirkuk oilfield development contract


Iraq’s state-run North Oil Company signed an agreement with BP on Monday to triple output from the Kirkuk fields in the north of the country, Oil Minister Jabar al-Luaibi said.

FILE PHOTO: The logo of BP is seen at a petrol station in Kloten, Switzerland October 3, 2017. REUTERS/Arnd Wiegmann/File Photo

The agreement was signed in the southern Iraqi city of Basra, he told a news conference after the signing.

Under the deal, BP will boost output capacity from six fields in the Kirkuk region to a total of more than 1 million barrels per day (bpd), three times today’s capacity in the region.

The oilfields were returned to Baghdad’s control in October after Iraqi government forces dislodged Kurdish fighters from the area. The minister began talks with BP in October, days after the Kurdish fighters were driven expelled.

Oil exports from the region, transported by pipeline to Turkey, were halted after the Iraqi military operation, which was launched in retaliation against an independence referendum held on Sept. 25 by the semi-autonomous Kurdistan Regional Government (KRG).

Iraq plans to start trucking crude from Kirkuk to Iran, but the road to the border has yet to be secured from attacks by Islamic State insurgents.

BP had agreed in 2013 to help Baghdad halt a sharp decline in output from Kirkuk. The KRG then took control of the Kirkuk region in 2014, when the Iraqi army collapsed in the face of Islamic State’s sweeping advance in northern and western Iraq.

The Kurdish move prevented the fields from falling into the hands of the militants.

Kirkuk is one of the biggest and oldest oilfields in the Middle East, estimated to contain about 9 billion barrels of recoverable oil, according to BP.

BP has provided technical assistance in the past to North Oil to help redevelop the Kirkuk field.

Iraq, the second biggest producer in the Organization of Petroleum Exporting Countries behind Saudi Arabia, has capacity to produce almost 5 million bpd, but now produces 4.45 million bpd to comply with an OPEC-led deal to curb supplies.

Most of Iraq’s crude is produced from areas managed by the central government of Baghdad, in the south, and exported from southern ports on the Gulf. The KRG exports about 300,000 bpd of crude from northern Iraq through a pipeline across Turkey.

3 Comments on "Iraq, BP sign Kirkuk oilfield development contract"

  1. Cloggie on Wed, 9th May 2018 12:44 pm 

    Iraq’s state-run North Oil Company signed an agreement with BP on Monday to triple output from the Kirkuk fields in the north of the country, Oil Minister Jabar al-Luaibi said.

    Paul Wolfowitz, one of the PNAC signatories…

    Elliott Abrams[5]
    Gary Bauer[5]
    William J. Bennett[5]
    John Ellis “Jeb” Bush[5]
    Dick Cheney[5]
    Eliot A. Cohen[5]
    Midge Decter[5]
    Paula Dobriansky[5]
    Steve Forbes[5]
    Aaron Friedberg[5]
    Francis Fukuyama[5]
    Frank Gaffney[5]
    Fred C. Ikle[5]
    Donald Kagan[5]
    Zalmay Khalilzad[5]
    I. Lewis “Scooter” Libby[5]
    Norman Podhoretz[5]
    J. Danforth Quayle[5]
    Peter W. Rodman[5]
    Stephen P. Rosen[5]
    Henry S. Rowen[5]
    Donald Rumsfeld[5]
    Vin Weber[5]
    George Weigel[5]
    Paul Wolfowitz[5]

    …a list btw that reads like the telephone book of Tel Aviv, which should give you a clear idea who are the members of George Carlin’s “Big Club” of which you ain’t in it

    …this Paul Wolfowitz had claimed that after the invasion, the rape of Iraq would be paid for by stealing the hapless country’s oil.

    It didn’t happen. Although it wasn’t advertised as such, the truth is that the US army was effectively thrown out of the country, after it had been driven back into the Green Zone and locked up there with nothing to do.

    Not bad for a Shi’te population that used the US army to topple Sunni dictator Saddam, next gave the finger to western “human rights”, “gay rights”, “wimmin’s rights”, demockressie and all that jazz and took over the country and buddied up with fellow Shia Iran, en passant opening a Shia land bridge (“Shia Crescent”) to Syria…

    …that would come in very handy when the US, Turkey, KSA and Qatar tried to topple Assad, a few years later, again in vain.

    Now allegedly Iranian forces are seen near the Golan Heights. This just in:

    If Turkey and Iran buddy up, the fate of KSA and Israel are sealed.

    Oh wait…

  2. Dredd on Thu, 10th May 2018 8:15 am 

    Science shows that safeguarding the climate will require us to leave most fossil fuels in the ground. Can we restrain ourselves?” (Scientific American)

  3. Dredd on Thu, 10th May 2018 8:25 am 

    Iraq: World’s Number One Oil Producer? – 8

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