BP, Iraq agree on technical terms to redevelop Kirkuk oil fields
Adds disclosure in paragraph 8
Dec 19 (Reuters) -British oil major BP BP.L said on Thursday it has reached a deal with the Iraqi government on the technical terms to redevelop the Kirkuk oil and gas fields.
The company had signed an agreement with the Iraqi government in August to develop and explore the Kirkuk oilfield in the north of the country, which will also include building power plants and solar capacity.
Unlike historic contracts that offer foreign companies razor-thin margins, the new agreements are expected to include a more generous profit-sharing model, sources have told Reuters.
Iraq, the second-largest oil producer in the Organization of the Petroleum Exporting Countries after Saudi Arabia, has the capacity to produce nearly 5 million barrels per day.
BP was a member of the consortium of oil companies that discovered oil in Kirkuk in the 1920s. BP has estimated the Kirkuk field holds about 9 billion barrels of recoverable oil.
"Today's signing is an important step toward a fully termed contract," BP executive vice president William Lin said in a statement. The company said negotiations are expected to complete early in 2025.
The company holds a 50% stake in a joint venture operating the giant Rumaila oilfield in the south of the country, where it has been operating for a century.
The Iraqi government did not immediately respond to a request for comment on Thursday's development.
Reporting by Arunima Kumar in Bengaluru; Editing by Arun Koyyur
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