ConocoPhillips Acquires 42% Stake in BP Kirkuk Oil Venture

ConocoPhillips has agreed to acquire a 42% stake in BP Energy Company of Kirkuk Limited, marking the company's return to Iraq after more than a decade. The partnership aims to rehabilitate and optimize production in the Kirkuk oil fields, targeting more than 3 billion barrels of oil equivalent with an estimated investment cost of approximately $25 billion.

The deal provides access to the Baba and Avanah domes, as well as the Bai Hassan, Jambur, and Khabbaz fields. These historically significant assets, discovered in 1927, have suffered output declines due to regional conflict and currently produce between 285,000 and 330,000 barrels per day.

The agreement is expected to be formally signed in Washington, D.C., during a visit by Iraqi Prime Minister Ali al-Zaidi for the US-Iraq Business Summit. The summit is anticipated to facilitate over $60 billion in agreements between the Iraqi government and U.S. firms to expand energy capacity and develop alternative export routes to reduce dependence on the Strait of Hormuz. This strategic move by the Iraqi government seeks to increase U.S. energy investments to counter Chinese influence in the region. Additionally, Chevron Corp. is expected to sign accords regarding oil fields and pipelines during the summit. The ConocoPhillips transaction is expected to close by the end of 2026, with an effective date of July 1, 2026.