ConocoPhillips Acquires 42% Stake in BP Iraq Oil Project

ConocoPhillips has agreed to acquire a 42% interest in BP Energy Company of Kirkuk Limited (BP ECKL), marking the company's return to Iraq after more than a decade. The partnership with BP focuses on the redevelopment of the Kirkuk oil fields in northern Iraq, specifically targeting the Baba and Avanah domes as well as the Bai Hassan, Jambur, and Khabbaz fields. These resources, currently operated by the Northern Oil Company, hold an estimated 3 billion barrels of oil equivalent in gross recoverable resources.

The agreement was facilitated during an official visit to Washington, D.C., by Iraqi Prime Minister Ali al-Zaidi, who met with U.S. President Donald Trump for the US-Iraq Business Summit. The redevelopment program is estimated to cost approximately $25 billion. This move is part of a strategic effort by the Iraqi government to secure over $60 billion in agreements with U.S. firms to expand energy capacity and develop alternative export routes to bypass the Strait of Hormuz, which has been disrupted by regional conflict and naval blockades.

The transaction is expected to close by the end of 2026, with a retroactive effective date of July 1, 2026. In addition to the BP partnership, Iraq is expected to sign investment accords with Chevron Corp. concerning oil fields and pipelines. Prime Minister al-Zaidi characterized the partnership as a strategic move to counter Chinese influence in the region's energy landscape.