BP begins development work on the Northern Oil and Gas Company: “A qualitative leap and a huge investment figure”
Oil sources in the two government-owned companies, the North Oil and North Gas, reported on Wednesday that experts from the British oil company BP have begun work on developing the two companies’ infrastructure and production facilities, as part of a contract signed with the Iraqi Ministry of Oil.
The sources told Shafaq News Agency, “A team of engineers and experts arrived at the two companies’ headquarters in Kirkuk and began a comprehensive assessment of the fields and facilities, in preparation for developing a long-term development plan aimed at raising production levels and improving extraction efficiency.”
She added, “The partnership with BP comes as part of a government plan to modernize the oil sector’s infrastructure in the north of the country and increase production capacity to meet local market needs and export plans.”
Last February, the Iraqi Ministry of Oil signed an agreement with the British company BP to develop four of the largest oil and gas fields in Kirkuk (Baba, Awana, Bay Hassan, Jambur, and Khabbaz), with an estimated investment level ranging between $20 and $25 billion, according to what the Iraqi government announced at the time.
According to the ministry, the agreement includes the preparation of advanced technical and geological studies, the use of modern technologies in reservoir management and the prevention of associated gas flaring, as well as the rehabilitation of old facilities and the training of Iraqi personnel to enhance their technical proficiency.
Regarding current production figures, the Ministry of Oil’s data indicates that “Kirkuk fields currently produce between 285,000 and 330,000 barrels per day, most of which is allocated for local consumption, with limited quantities exported to Jordan. Baghdad aims, through this partnership, to gradually increase production by a rate of between 50,000 and 100,000 barrels per day over the coming years, as part of its national plan to increase production capacity to more than 6 million barrels per day by 2029, compared to a rate of approximately 4 million barrels per day currently.”
On the gas front, the North Gas Company produces approximately 410 million standard cubic feet of associated gas per day, having increased its supplies to power plants by 50 million standard cubic feet per day over the past year, in a move aimed at reducing reliance on imports and enhancing national energy security.
The source explained that “BP has completed preliminary surveys of a number of oil fields, and in the coming days, the first phase of the survey work for the North Oil Company will be completed, followed by the transition to the North Gas Company, and drafts will be prepared to develop the company, increase its production, and develop its infrastructure.”
In the same context, oil expert Abbas Mahmoud told Shafaq News Agency, “BP will invest between $25 and $30 billion in developing the North Oil and North Gas companies, a huge investment figure that will create a qualitative shift in the oil sector in northern Iraq.”
He explained that these investments “will include infrastructure rehabilitation, reservoir development, modernization of export channels, and the introduction of modern technologies for processing associated gas,” stressing that the project “represents a milestone in attracting foreign investment and enhancing Iraq’s ability to respond to local and regional market demands.”
Regarding the strategic importance, he explained, “The entry of BP experts into Kirkuk represents an important strategic step in Iraq’s efforts to attract foreign investment and modernize the energy sector, especially since the province possesses large oil and gas reserves but has suffered for years from declining production rates due to the age of its facilities and weak investments.”
Shafaq.com