en.Wedoany.com Reported - ConocoPhillips has agreed to acquire a 42% stake in BP Energy Company of Kirkuk Ltd from BP, joining the British oil giant in redeveloping four producing oil fields in northern Iraq. The deal is expected to be signed during Iraqi Prime Minister Ali al-Zaidi's official visit to Washington.

The contract scope of this acquisition includes the Baba and Avanah domes of the Kirkuk oil field, as well as the Bai Hassan, Jambur, and Khabbaz fields. These fields have an initial total recoverable resource of over 3 billion barrels of oil equivalent, with potential for further exploration. Al-Zaidi is seeking to increase U.S. investment in Iraq's oil, gas, and power sectors following disruptions related to the Iran conflict.

The transaction comes as BP reshapes its portfolio under CEO Meg O’Neill. O’Neill, who took over in April after a long tenure at Exxon Mobil, has committed to simplifying the company, tightening capital discipline, and prioritizing investments in the highest-return oil and gas assets, while recycling capital through selective partnerships and asset sales.

For Iraq, this is another effort to attract more U.S. investment into a sector increasingly dominated by Chinese companies in recent years. Al-Zaidi's cabinet recently approved an agreement with U.S. firm HKN Energy to develop the Himreen oil field in northern Iraq, as well as a deal with General Electric to expand cooperation in the country's power generation and transmission.

The Kirkuk oil field, discovered about a century ago, remains one of Iraq's oldest producing fields and still holds significant remaining reserves, making it a core part of Baghdad's plans to sustain crude oil production for decades to come. BP stated that the transaction will not affect contract terms, the operator roles of Iraq's Northern Oil Company and North Gas Company, or the planned transfer of operations to an entity primarily staffed by its personnel. The two companies expect the joint venture will not require significant capital investment. The deal is expected to close by the end of 2026.