BP Plc said ConocoPhillips will acquire 42% of its stake in a venture that’s redeveloping Iraq’s giant Kirkuk oil fields, a major revival target for the OPEC heavyweight that has experienced output decline since the Iran war began.
Financial terms of the partnership, to be signed as part of Iraqi Prime Minister Ali Al-Zaidi’s trip to the US this week, were not disclosed in the company announcements on Friday. The visit is also expected to bring a Chevron Corp. signing on Friday that will advance its negotiations about investing in large oil fields and a pipeline to bypass the Strait of Hormuz.
For BP and ConocoPhillips, their development and production contract covers an initial phase of more than 3 billion barrels of oil equivalent from Kirkuk. The commitment is considered early stage and still requires more work before actual output could be made.
London-based BP has been refocusing on oil and gas, with Iraq seen as important to the company’s fossil fuel investment. Friday’s announcement marks a return to Iraq for Houston-based ConocoPhillips, which left the country more than a decade ago.