Iraqi-UK agreement to rehabilitate four fields in Kirkuk

INA - BAGHDAD

PM Muhammed S. Al-Sudani sponsored the signing of an agreement on Tuesday with British Petroleum—BP to rehabilitate and develop the four Kirkuk fields. 

"An agreement to rehabilitate and develop the four Kirkuk fields was signed in Baghdad between the North Oil Company affiliated with the Ministry of Oil, and the British company British Petroleum—BP," according to a statement by the PM's media office - received by the Iraqi News Agency - INA.

The statement added, "The signing comes after an agreement with the concerned company on technical issues and contractual terms, including the economic model of the project, based on the memoranda of understanding that were signed in London during the Prime Minister's recent visit to Britain, which aimed to ensure the best contractual terms and benefits for the Iraqi side, after lengthy detailed negotiations with the Ministry of Oil, according to PM's directives, for the optimal investment of energy and providing crude oil to the northern refineries and reducing their dependence on southern oil, as the agreement is the last stage before signing the contract finally."

The agreement included the development of the four main Kirkuk fields Bai Hassan, Kirkuk with its two domes (Baba and Avana), Jambur, and Khabbaz, ensuring the investment of associated gas, as well as the rehabilitation and expansion of gas facilities in the North Gas Company and the establishment of a 400-megawatt power station "to achieve the desired goals of this integrated strategic project."

"The project will provide the absorption of workers in various specializations, operate local companies, implement social benefit projects, and develop the skills of engineering and technical resources, supporting the staff of the North Oil Company and the North Gas Company, within the government's vision for training programs and raising the level of competencies within the framework of what British Petroleum provides, in coordination with the Ministry of Oil," included the statement.