عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Iraq and BP Finalize Contracts to Develop 4 Fields in Kirkuk

Iraq’s Prime Minister Mohammed Shia Al-Sudani and the BP delegation at the signing ceremony on Wednesday (INA) 
Iraq’s Prime Minister Mohammed Shia Al-Sudani and the BP delegation at the signing ceremony on Wednesday (INA) 
TT
20
TT

Iraq and BP Finalize Contracts to Develop 4 Fields in Kirkuk

Iraq’s Prime Minister Mohammed Shia Al-Sudani and the BP delegation at the signing ceremony on Wednesday (INA) 
Iraq’s Prime Minister Mohammed Shia Al-Sudani and the BP delegation at the signing ceremony on Wednesday (INA) 

Iraq, on Wednesday, finalized a contract with the London-based oil major, BP, for the development and production of four Kirkuk oil fields.

The project is a breakthrough for Iraq, where output has been constrained by years of war, corruption and sectarian tensions, and a cornerstone of BP’s drive to refocus on its oil and gas business and away from renewables, according to Reuters.

Tuesday’s signing of a final agreement on the project between BP CEO Murray Auchincloss and Iraq’s Prime Minister Mohammed Shia Al-Sudani follows an initial deal signed last month and a memorandum of understanding last year.

According to a statement from the Iraqi Prime Minister’s office, a contract was signed between the Ministry of Oil and the British company BP regarding the development and production project for the four Kirkuk oil fields, namely Kirkuk with its two domes Baba and Avana, Bai Hassan, Jambur, and Khabbaz.

The ceremony was attended by 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.

The project, according to the statement, includes “the rehabilitation and development of the four fields to enhance hydrocarbon reserves, increase crude oil production rates with the goal of reaching a peak production rate of 420,000 barrels per day, and invest in associated gas by rehabilitating and expanding the North Gas Company's facilities to produce 400 million standard cubic feet per day, and constructing a power plant with a capacity of 400 megawatts.”

Also, the project will contribute to stopping the continued burning of gas associated with crude oil production by utilizing it optimally, providing the fuel needed for power plants, and absorbing a workforce of various specialties and developing the technical and engineering cadres working there, the statement said.

The first phase of the redevelopment of the Kirkuk fields, which BP first helped to discover in the 1920s, will cover their Baba and Avanah domes and three adjacent fields Bai Hassan, Jambur and Khabbaz, BP said.

 

 

Most Viewed

 
Business

Egypt Makes Progress in its Nuclear Energy Project

Construction work at the El-Dabaa nuclear power plant. (Egyptian Nuclear Power Plants Authority)
Construction work at the El-Dabaa nuclear power plant. (Egyptian Nuclear Power Plants Authority)
TT
20
TT

Egypt Makes Progress in its Nuclear Energy Project

Construction work at the El-Dabaa nuclear power plant. (Egyptian Nuclear Power Plants Authority)
Construction work at the El-Dabaa nuclear power plant. (Egyptian Nuclear Power Plants Authority)

Egypt has reported significant progress in the construction of the El-Dabaa nuclear power plant in the country’s northwest, a project being developed in cooperation with Russia. The government announced on Tuesday that more than 20% of the project has been completed.

Egypt and Russia signed a cooperation agreement on November 19, 2015, to establish the nuclear power station at a cost of $25 billion, funded through a Russian government loan. The final agreements for El-Dabaa were signed in December 2017.

The plant will consist of four nuclear reactors with a total generation capacity of 4,800 megawatts, each producing 1,200 megawatts. The first reactor is scheduled to begin operations in 2028, with the remaining units coming online gradually as part of Egypt’s energy mix.

In its quarterly performance report, the Egyptian government stated that the project aligns with efforts to expand the peaceful use of nuclear energy within the national power grid.

President Abdel Fattah al-Sisi emphasized in November the importance of executing energy projects efficiently and on schedule, calling them a pillar of Egypt’s development strategy. He underscored the need to adhere to the project timeline while ensuring the highest standards of execution and workforce training.

Also in November, Prime Minister Mostafa Madbouly reaffirmed Egypt’s commitment to the project, stating that El-Dabaa would enhance renewable energy capacity and stabilize the national power grid.

In early March, Russia’s Atomstroyexport announced that construction on the second reactor at El-Dabaa had progressed ahead of schedule. According to the Egyptian Nuclear Power Plants Authority, the second tier of the inner containment structure had been installed at the reactor building.

Egypt experienced widespread power outages last summer, which ended in late July after securing sufficient fuel supplies for its power plants.

The El-Dabaa project is part of Egypt’s strategy to diversify its energy sources, generate electricity to meet domestic demand, and reduce reliance on imported gas and other fuels.

On Tuesday, the government also announced an additional 200 megawatts of private-sector solar power capacity as part of its efforts to expand renewable energy. Officials said the move would support energy diversification and advance the country’s sustainable development strategy.