Commodities
Home›Commodities›Energy›ConocoPhillips to buy 42% stake in BP’s Kirkuk oilfiel…
ConocoPhillips to buy 42% stake in BP’s Kirkuk oilfield subsidiary
The Kirkuk development and production contract targets an initial phase of extracting more than 3 billion barrels of oil equivalent, with returns tied to incremental production volumes and costs.
ConocoPhillips has agreed to acquire a 42% stake in BP Plc’s development subsidiary tied to four major oilfields in Iraq’s Kirkuk region, the companies said in a deal aimed at rehabilitating and optimizing production.
OilPrice reports the Kirkuk partnership is expected to cost about $25 billion for redevelopment, and it centers on a Development and Production Contract that targets an initial phase producing more than 3 billion barrels of oil equivalent.
The joint venture is expected to operate as an equity affiliate structure, with no significant upfront capital contributions from the companies and returns linked to incremental production volumes and costs, according to OilPrice.
Northern Oil Company and Northern Gas Company are set to retain operator roles, while the deal also comes as Iraqi officials seek to expand Western energy investment amid long term declines in the century old Kirkuk fields exacerbated by regional conflict.