ERBIL – British Petroleum (BP) is set to construct new power plants in Iraq as part of a contract to develop four oil and gas fields in the northern Kirkuk Governorate, an Iraqi official announced.
Abbas Karim, financial deputy of Kirkuk’s governor, said the agreement would significantly boost oil and gas output while improving operations at Iraq’s North Oil Company.
“The agreement is expected to largely increase output and utilise associated gas, contributing to electricity generation in Kirkuk through new power stations,” he told Iraqi local media.
Karim emphasized that the deal addresses Kirkuk’s urgent need to revive its hydrocarbon sector and improve essential services, including electricity. “The provincial authorities are awaiting BP’s start on implementing the contract in the near future,” he added.
In 2024, Iraq reached an agreement with BP to redevelop the four fields, aiming to increase oil production by up to 150,000 barrels per day.
The deal also includes investments to eliminate gas flaring by 2028. However, the Kurdistan Regional Government (KRG) criticized the unilateral nature of the agreement, calling for KRG participation in the deal.
The project is expected to bring much-needed development to Kirkuk’s energy infrastructure and contribute to Iraq’s broader goals of enhancing energy production and reducing environmental impact.