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BP, Iraq Advance Redevelopment of Kirkuk Oil Fields
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BP plc (BP - Free Report) announced an agreement with the Iraq government to redevelop the Kirkuk oil and gas fields in northern Iraq, per a Reuters report. The deal, finalized on Dec. 19, outlines technical terms for a project that aims to boost the field’s production capacity while incorporating renewable energy solutions such as power plants and solar infrastructure.
BP initially signed a broader development agreement with Iraq in August, reaffirming its commitment to the country’s energy sector. Iraq, the second-largest oil producer in OPEC, currently has the capacity to produce approximately 5 million barrels per day (bpd).
Kirkuk, a historic oil field discovered in the 1920s with BP’s involvement, holds an estimated 9 billion barrels of recoverable oil. This project marks BP’s return to one of the world’s most significant energy reserves. According to BP executive vice president William Lin, the company aims to finalize a comprehensive contract in early 2025.
BP also operates in Iraq’s southern Rumaila oilfield, holding a 50% stake in the joint venture. Rumaila is one of the world’s largest oil fields and has been a cornerstone of BP’s operations in the region for nearly a century.
Industry sources revealed that, unlike Iraq’s traditional contracts offering limited margins to foreign operators, this new agreement may feature a more lucrative profit-sharing model. However, BP has not yet disclosed whether the Kirkuk fields will be developed under a profit-sharing, production-sharing, or technical service contract.
Per the report, a BP spokesperson refused to provide additional details on the technical terms or operational specifics. The Iraq government did not respond to requests for comment.
BP’s commitment to incorporating renewable energy in its Kirkuk redevelopment plan reflects the company’s broader transition strategy. By integrating solar capacity and power generation with traditional oil and gas development, BP aligns with its global goals of reducing carbon emissions while maintaining its role in meeting global energy demand.
BP’s Zacks Rank & Key Picks
BP currently carries a Zack Rank #5 (Strong Sell).
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. It focuses on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.
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BP, Iraq Advance Redevelopment of Kirkuk Oil Fields
BP plc (BP - Free Report) announced an agreement with the Iraq government to redevelop the Kirkuk oil and gas fields in northern Iraq, per a Reuters report. The deal, finalized on Dec. 19, outlines technical terms for a project that aims to boost the field’s production capacity while incorporating renewable energy solutions such as power plants and solar infrastructure.
BP initially signed a broader development agreement with Iraq in August, reaffirming its commitment to the country’s energy sector. Iraq, the second-largest oil producer in OPEC, currently has the capacity to produce approximately 5 million barrels per day (bpd).
Kirkuk, a historic oil field discovered in the 1920s with BP’s involvement, holds an estimated 9 billion barrels of recoverable oil. This project marks BP’s return to one of the world’s most significant energy reserves. According to BP executive vice president William Lin, the company aims to finalize a comprehensive contract in early 2025.
BP also operates in Iraq’s southern Rumaila oilfield, holding a 50% stake in the joint venture. Rumaila is one of the world’s largest oil fields and has been a cornerstone of BP’s operations in the region for nearly a century.
Industry sources revealed that, unlike Iraq’s traditional contracts offering limited margins to foreign operators, this new agreement may feature a more lucrative profit-sharing model. However, BP has not yet disclosed whether the Kirkuk fields will be developed under a profit-sharing, production-sharing, or technical service contract.
Per the report, a BP spokesperson refused to provide additional details on the technical terms or operational specifics. The Iraq government did not respond to requests for comment.
BP’s commitment to incorporating renewable energy in its Kirkuk redevelopment plan reflects the company’s broader transition strategy. By integrating solar capacity and power generation with traditional oil and gas development, BP aligns with its global goals of reducing carbon emissions while maintaining its role in meeting global energy demand.
BP’s Zacks Rank & Key Picks
BP currently carries a Zack Rank #5 (Strong Sell).
Investors interested in the energy sector may look at some better-ranked stocks like TechnipFMC plc (FTI - Free Report) , FuelCell Energy (FCEL - Free Report) and Nine Energy Service (NINE - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. It focuses on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.