BP, ConocoPhillips Partner In Iraq’s Giant Oilfield

By Alex Kimani - Jul 17, 2026

ConocoPhillips (NYSE:COP) agreed to acquire a 42% stake in BP Plc’s (NYSE:BP) development subsidiary covering four major oilfields in the Kirkuk region of northern Iraq, with the partnership aiming to rehabilitate and optimize production at a cost of ~$25 billion. The deal brings ConocoPhillips back to Iraq for the first time in over a decade, and aligns with Baghdad’s goal to expand U.S. energy investments. The Development and Production Contract (DPC) targets an initial phase aiming to extract more than 3 billion barrels of oil equivalent. Both firms expect the joint venture to function as an equity affiliate, requiring no significant upfront capital contributions from the companies while returns will link proportionally to incremental production volumes and costs. Current state operators Northern Oil Company and Northern Gas Company will retain their active roles.

Iraqi Prime Minister Ali Al-Zaidi recently pitched major energy deals to Western majors like ConocoPhillips and Chevron Corp.(NYSE:CVX) to counter the dominant presence of Chinese firms in Iraq's energy landscape. The century-old Kirkuk fields have suffered long-term output declines exacerbated by regional conflict.The super-giant Kirkuk oil field in northern Iraq is undergoing a major $25 billion redevelopment led by BP and ConocoPhillips to boost recoverable resources and production.

Discovered in 1927 at Baba Gurgur, the super-giant Kirkuk oil field contains over 3 billion barrels of initial gross recoverable resources and remains the cornerstone of northern Iraqi oil output. The field has historically produced up to 1 million barrels per day, but currently produces between 285,000 and 330,000 barrels per day, largely for domestic consumption. However, Iraq's North Oil Company successfully restarted crude oil exports of 250,000 barrels per day via the Kirkuk-Ceyhan pipeline to Turkey in March 2026, following nearly three years of suspension. Historically dependent on the Kirkuk–Ceyhan Oil Pipeline to transit crude north through Turkey, Iraq has actively sought diversified routes to bypass maritime chokepoints like the Strait of Hormuz. This includes multi-government initiatives backed by the U.S. to reconstruct the long-dormant, 800-kilometer Kirkuk–Baniyas pipeline directly through Syria to the Mediterranean coast.

Alex Kimani for Oilprice.com

 

ConocoPhillips to Buy 42% Stake in BP's Iraq Kirkuk Oil Venture

By Charles Kennedy - Jul 17, 2026

ConocoPhillips has agreed to acquire a 42% interest in BP Energy Company of Kirkuk Limited from BP, marking its entry into the redevelopment of some of Iraq's largest producing oil fields and expanding its exposure to long-life, low-cost conventional resources.

The agreement, expected to be formally signed during Iraqi Prime Minister Ali al-Zaidi's visit to Washington, D.C., gives ConocoPhillips a stake in the development and production contract covering the Baba and Avanah domes of the Kirkuk field, along with the nearby Bai Hassan, Jambur, and Khabbaz fields in federal Iraq. Together, the assets contain an initial gross recoverable resource estimated at more than 3 billion barrels of oil equivalent, with additional exploration potential beyond the currently identified reserves.

Chief Executive Ryan Lance said the transaction fits ConocoPhillips' disciplined investment strategy by providing access to a large, long-life resource base that meets the company's cost-of-supply requirements. He added that the company expects to create value through capital-efficient redevelopment of existing producing fields while also benefiting from future exploration opportunities.

Unlike a traditional acquisition requiring significant upfront development spending, ConocoPhillips said the investment is not expected to require substantial capital contributions after closing. Instead, the joint venture will be accounted for as an equity affiliate, with the company's returns tied to its share of incremental production and associated costs.

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

The deal strengthens ConocoPhillips' international upstream portfolio while supporting Iraq's efforts to rehabilitate and expand production from the historic Kirkuk region, one of the Middle East's oldest and most prolific oil-producing provinces. The investment also aligns with a broader industry trend of international oil companies returning to large, lower-cost conventional assets as global demand for oil remains resilient and governments seek to maximize output from existing fields.

By Charles Kennedy for Oilprice.com

Baghdad Bets on Syria and Turkey Pipelines to Secure Oil Exports

By Oilprice.comEditorial Dept - Jul 17, 2026

Politics, Geopolitics & Conflict

Baghdad is assembling a westward export system capable of carrying southern Iraqi crude to the Mediterranean through Syria or Turkey. Iraq has brought Chevron, U.S. investment firm Capital TI, and Qatar’s UCC into technical and financial studies for two oil export pipelines built around a common Basra-Haditha trunk. One route would continue through Kirkuk to Turkey’s Mediterranean port of Ceyhan; the other would cross Syria to Baniyas. KBR is conducting a separate study of the Basra-Haditha section, where construction began in May on a pipeline designed to carry 2.5 million barrels per day. This week, Washington endorsed the restoration of the Kirkuk-Baniyas line, which has been largely inoperative since 2003, and Chevron is preparing agreements covering the West Qurna 2 and Nassiriya oilfields alongside its work on export routes outside Hormuz. Iraq has also begun shipping limited crude and naphtha volumes through Syrian ports and intends to keep doing so even after Hormuz stabilizes (if it stabilizes).

A drone struck a vessel near Iraq’s Basra Oil Terminal on Thursday, the second drone incident involving Basra province’s port infrastructure in two days. Iraq’s Oil Ministry said crude loading continued normally and that exports from southern terminals had not been disrupted. No damage has been reported to the tanker or port facilities. Basra handles more than 3 million bpd of crude exports.