bp has signed a memorandum of understanding (MoU) with Iraq to negotiate a material-integrated redevelopment program for the Kirkuk region, including oil and gas investment, power generation, and solar along with wider exploration activities.

“This MoU builds on bps’s strategic and longstanding relationship with Iraq. We see today’s signing as an important step towards the potential further development of this critically important area. It aligns with bp’s six clear priorities and is in support of our drive to deliver as a simpler, more focused, higher value company,” said Murray Auchincloss, bp chief executive officer

The MoU signed on Monday for Kirkuk includes the Baba and Avanah domes and three adjacent fields, Bai Hassan, Jambur, and Khabbaz in Iraq, operated by the Government of Iraq’s North Oil Company (NOC).

bp and Iraq will work on the rehabilitation of existing facilities, and the construction of new facilities including gas expansion projects, and a drilling program at the Kirkuk fields.

As part of the MoU, bp also proposes to explore opportunities for investment into power generation and the introduction of solar power facilities to the region.

bp referred to the integrated redevelopment program as having the potential to bring opportunity and investment into the Kirkuk region and unlock future downstream growth while bringing tangible benefits to the local population, with job creation and local supply requirements.

Notably, negotiations are expected to be complete early in 2025.

bp was a member of the consortium of oil companies that discovered oil in Kirkuk in the 1920s. From 2013 to 2019 bp worked with the Ministry of Oil and North Oil Company on technical studies exploring the potential for redevelopment at Kirkuk.