bp announced that it has received final government ratification for its contract to invest in the redevelopment of several giant oil fields in Kirkuk, in the north of Iraq.

According to the company’s statement, the contract between North Oil Company (NOC), North Gas Company (NGC) and bp includes the rehabilitation and redevelopment of the fields, spanning oil, gas, power and water with potential for investment in exploration.

The final agreement was signed in a meeting in Baghdad with Iraq Prime Minister  Mohammed Shia’ Al Sudani,  Hayan Abdul Ghani, Deputy PM for Energy Affairs and Minister of Oil, and bp chief executive Murray Auchincloss, together with Nader Zaki, bp regional president for Middle East and North Africa, and Zaid Elyaseri, bp President Iraq.

“bp has a decades-long history in Iraq, and we look forward to building on this as we embark on our next chapter of production in the country,” said Murray Auchincloss.“From signing a memorandum of understanding last year to now fully completing our agreement, we’re looking forward to getting to work. Together with our partners, we aim to deliver world-class operations, combining deep local knowledge with our expertise in managing giant fields and safely executing major projects.

“bp has a decades-long history in Iraq, and we look forward to building on this as we embark on our next chapter of production in the country” Murray Auchincloss, chief executive officer

“This is an enormous opportunity as we grow bp’s oil and gas business and fully aligned with our strategy of strengthening our upstream portfolio.”

Now that the agreement has full approval, bp will work under the guidance of the Government to set up a new operator – an unincorporated organization comprising predominantly personnel from NOC and NGC, but also with secondees from bp – to prepare for the initial stages of development.

The agreement is for an initial phase that includes oil and gas production of more than 3 billion barrels of oil equivalent (boe). It includes the Baba and Avanah domes of the Kirkuk oil field and three adjacent fields in Federal Iraq – Bai Hassan, Jambur and Khabbaz – all of which are currently operated by the NOC. The wider resource opportunity across the contract and surrounding area is believed to include up to 20 billion barrels of oil equivalent.