Bp signs agreement with Iraq on development of oil & gas fields in Kirkuk

The British energy giant "British Petroleum" (bp) has signed a Memorandum of Understanding with the Iraqi government on the development of four oil and gas fields in the north of Kirkuk province, Azernews reports, citing the "Al Arabiya" TV channel.

The document was signed by Iraq's oil minister Hayan Abdel Ghani and bp's CEO Murray Aukinklos.

The memorandum includes the recovery and development of four oil fields owned by the Northern Oil Company of Iraq: Kirkuk, Bayi Hassan, Jambur and Khabbaz.

The Iraqi Prime Minister's office said: "This initiative is part of the government's efforts to optimally attract investment in promising energy opportunities aimed at increasing oil production, gas and solar energy investments."

Bp is one of the largest foreign investors in Iraq's oil sector. Oil production in this country was carried out by Britain in the 1920s.

According to the World Bank, Iraq has 145 billion barrels of proven oil reserves, one of the largest in the world, providing 96 years of production at current rates. But Iraq aims to continue field exploration to increase its crude reserves to more than 160 billion barrels.

Despite its large oil reserves, Baghdad hopes to increase natural gas production to help reduce import dependence on neighboring Iran, a key supplier for Iraq's electricity generation. Prime Minister Sudani has repeatedly emphasized the importance of diversifying energy sources in order to overcome the shortage of electricity in Iraq, especially in the summer months.

In an effort to reduce dependence on Iranian gas, Baghdad has begun importing electricity from Jordan and Turkey and hopes to connect to the Gulf states' electricity grid later this year.