ConocoPhillips to Buy 42% Stake in bp's Kirkuk Venture in Iraq

ConocoPhillips said on July 17 that it agreed to acquire a 42% interest in BP Energy Company of Kirkuk Limited from bp, joining the redevelopment of four producing oil fields in the Kirkuk area of northern Iraq. Reuters reported the agreement was announced during Iraqi Prime Minister Ali al-Zaidi's visit to Washington as Baghdad sought additional U.S. energy investment.

According to ConocoPhillips, BP ECKL holds the development and production contract covering the Baba and Avanah domes of the Kirkuk oil field and the adjacent Bai Hassan, Jambur and Khabbaz fields. The company said the contract includes an initial gross recoverable resource estimate of more than 3 billion barrels of oil equivalent, a company figure tied to the redevelopment program rather than an independently audited reserve booking.

ConocoPhillips said the transaction is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions, with an effective date of July 1, 2026. The company also said the joint venture would be accounted for as an equity affiliate and is not expected to require significant capital contributions, with remuneration linked to a proportionate share of incremental production and costs.

The Kirkuk redevelopment framework predates ConocoPhillips' entry. In February 2025, bp said it had reached final contractual terms with Iraq for the Kirkuk redevelopment, and in March 2025 the company said the contract received final Iraqi government ratification. Neither ConocoPhillips nor bp disclosed financial terms for the new 42% stake agreement.