ERBIL, Kurdistan Region of Iraq - Iraqi Prime Minister Mohammed Shia' al-Sudani on Tuesday oversaw the signing of an agreement between British Petroleum/BP company and the North Oil Company to rehabilitate and develop the four Kirkuk fields.
Tuesday’s signing came around a month and a half after a Memorandum of Understanding (MoU), aimed at rehabilitating the four Kirkuk oilfields - the Baba and Avanah domes and three adjacent fields - Bai Hassan, Jambur, and Khabbaz, all operated by the Iraqi government’s North Oil Company - was signed during a visit to London by PM Sudani.
The agreement is to develop the four main Kirkuk fields, "ensuring investment in associated gas as well as rehabilitating and expanding gas facilities in the North Gas Company and establishing a power station with a capacity of 400 megawatts to achieve the desired goals of this strategic project,” read a statement by Iraqi Prime Minister’s office.
According to the statement, the project will create jobs in various specialties, and operate local companies.
Kirkuk is known for its vast natural resources and oil-rich fields.
The deal consists of rehabilitating existing facilities, where required, and the construction of new facilities - including gas expansion projects - together with a drilling program at the Kirkuk fields, has the potential to stabilize production and reverse the decline, returning production from this nationally important oilfield to a growth path, according to an earlier statement from BP in December.
Iraq has been looking for ways to increase oil production and sales from the city, namely, the attempts at reviving the Kirkuk-Baniyas pipelines to increase the daily export of its oil.
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