ConocoPhillips has reached an agreement with bp to acquire a 42% stake in BP Energy Company of Kirkuk (BP ECKL) and join the ongoing redevelopment of major oilfields in the Kirkuk region of northern Iraq.

The agreement was formalised during the official visit of Iraqi Prime Minister Ali Al-Zaidi to Washington, DC.

BP ECKL holds the development and production contract (DPC) for the Baba and Avanah domes of the Kirkuk oilfield, along with the neighbouring Bai Hassan, Jambur and Khabbaz fields. These four large-scale producing fields are located in Federal Iraq.

In March 2025, bp secured final ratification from the Iraqi Government for its contract to invest in the redevelopment project.

According to the DPC, the initial phase covers oil and gas production of more than three billion barrels of oil equivalent in gross recoverable resources.

The contract also provides for additional exploration within the area.

ConocoPhillips chairman and CEO Ryan Lance said: “This unique redevelopment opportunity is well aligned with our disciplined investment framework, providing access to a material, high-quality and long-life resource base, comfortably meeting our cost of supply threshold.

“Consistent with our focus on capital discipline, we see an opportunity to create value through a capital-efficient redevelopment programme that leverages a large existing production base, while also offering meaningful exploration upside.”

The transaction does not alter the existing contract framework or the current roles of the Northern Oil Company (NOC) and North Gas Company (NGC) as operators of the relevant assets.

The planned transition of operatorship to an unincorporated organisation mainly composed of NOC and NGC personnel remains unchanged.

BP will remain the majority shareholder in BP ECKL and will continue participating as a key member of the contractor group.

Following the closing of the deal, the joint venture will be accounted for as an equity affiliate, with partners each booking production and reserves according to the DPC terms.

Remuneration for BP ECKL under the contract will be determined by incremental production volumes, pricing and costs.

The completion of the transaction is expected by year-end, with an effective date of 1 July 2026, subject to regulatory approval and customary closing conditions.