ConocoPhillips takes 42% stake in BP’s Kirkuk unit

ConocoPhillips (COP) has agreed to acquire a 42% stake in BP Energy Company of Kirkuk Limited, expanding its presence in Iraq’s upstream sector. The company described the opportunity as consistent with its disciplined investment framework. BP Energy Company of Kirkuk Limited holds the development and production contract for several large-scale and currently producing oil fields in northern Iraq.

The transaction will see ConocoPhillips (COP) partner with BP on the redevelopment of one of Iraq’s oldest and largest producing oil regions. The move brings a second major Western oil company directly into the Kirkuk-focused venture, formalizing a joint approach to field rehabilitation and future production planning.

BP Energy Company of Kirkuk Limited’s contract covers the Baba and Avanah domes of the Kirkuk oil field in northern Iraq. In addition, it includes three adjacent fields: Bai Hassan, Jambur and Khabbaz. These assets are described as large-scale and currently producing, underscoring their ongoing role in Iraq’s oil output.

The development and production contract for these fields cites an initial phase involving more than 3 billion barrels of oil equivalent in gross recoverable resources. This figure highlights the scale of the resource base targeted by the BP–ConocoPhillips partnership. The plan is characterized as an early-stage redevelopment effort aimed at optimizing production from these mature fields.

The announcement and signing of the arrangement between BP and ConocoPhillips were expected to take place during Iraqi Prime Minister Ali al‑Zaidi’s official visit to Washington. The agreement was linked to a U.S.–Iraq business summit where energy-sector cooperation featured prominently. Reports indicated that the visit was expected to yield additional energy accords between Iraq and Western majors.

By aligning the partnership announcement with the Washington visit, Iraq has signaled an effort to attract more foreign investment into its oil sector. The Kirkuk-focused venture stands out among the agreements as it targets one of the country’s most historically significant and resource-rich oil areas.

ConocoPhillips’ leadership framed the acquisition as fitting within the company’s disciplined approach to capital allocation. The deal provides the company with a material stake in a large, producing resource base, underpinned by a structured redevelopment contract. This reflects a strategic interest in longer-term, resource-rich opportunities.

BP’s leadership described Kirkuk as a world-class resource base capable of supporting Iraq’s long-term energy ambitions while creating value for both the country and the company. With ConocoPhillips joining as a major partner in BP Energy Company of Kirkuk Limited, the venture gains an additional large-cap operator to help execute the early-stage redevelopment program across the Kirkuk-area fields.