BP and ConocoPhillips Join Forces to Revive Iraq’s Kirkuk Oilfield

The joint venture targets an initial extraction phase of over 3 billion barrels of oil equivalent, functioning as an equity affiliate that avoids heavy upfront capital requirements. Instead, financial returns will be tied directly to incremental production gains and operational costs. While BP and ConocoPhillips lead the technical strategy, Iraq’s Northern Oil and Northern Gas companies remain active operators, maintaining state oversight of the century-old assets.

For Baghdad, the deal serves as a strategic pivot to reintroduce Western majors into the energy sector, balancing the heavy regional influence of Chinese firms. The Kirkuk field, which once pumped 1 million barrels per day, has struggled with conflict-driven neglect, currently hovering between 285,000 and 330,000 barrels per day. The project also bolsters Iraq's push to diversify export routes, leveraging the Kirkuk-Ceyhan pipeline while exploring the potential reconstruction of the long-dormant Kirkuk–Baniyas link to the Mediterranean.