Iraq, BP agree to develop four Kirkuk fields, Iraqi state news reports

Iraq and oil major BP BP.L signed a deal to redevelop four Kirkuk oil and gas fields, Iraq’s state news agency reported on Tuesday.

The deal marks a breakthrough for Iraq, where output has been constrained by years of war, corruption and sectarian tensions.

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BP is expected to spend up to $25 billion over the lifetime of the project, a senior Iraqi oil official told Reuters in early February.

Tuesday’s signing came after the two parties agreed on "technical issues and contractual terms, including the economic model of the project,” according to a statement published by the state news agency.

The BP deal is focused on rehabilitating facilities in four oilfields and developing natural gas to support Iraq’s domestic energy needs.

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