ERBIL — The British Petroleum announced that has withdrawn from Iraq’s Kirkuk oilfield after it failed to come to a new agreement on the giant field’s expansion.
BP had an agreement with the Iraqi government worthing $100 million to expand the Kirkuk oil field and let the Baghdad government generate a larger revenue from tripled production at the field.
The agreement expired last December and the BP was reluctant to renew the deal with the outcomes of its studies at the oilfield.
An official at Iraq’s North Oil Company (NOC) confirmed BP’s decision to pull out, saying that it was “obvious” that the study results were not “encouraging for BP to extend its operations”, Reuters reported.
The British giant firm said in a statement: “In 2013, BP signed a letter of intent with the NOC of the Iraq Ministry of Oil to support field activity studies in Kirkuk. As planned, in December 2019 BP completed field work, studies and recommendations.”