BP sells its stake in Iraqi oil fields to Turkish TPAO
BP has agreed to sell a 15% stake in its subsidiary that manages oil and gas fields in the Kirkuk region to the Turkish state company Turkish Petroleum. This deal expands BP and TPAO’s cooperation in Iraq and strengthens their strategic partnership.
Petrus
British oil and gas company BP has reached an agreement to sell 15% of its subsidiary, which manages several oil and gas fields in the Kirkuk region of northern Iraq, to the Turkish state-owned company Turkish Petroleum (TPAO).
On Tuesday, BP announced that the parties had agreed on terms under which TPAO will acquire a stake in BP Energy Company of Kirkuk Limited (BP ECKL). This announcement follows BP’s sale of a 42% stake in BP ECKL to the American independent company ConocoPhillips in July.
In February, BP and TPAO signed a strategic cooperation agreement in the oil and gas sector. Following this, Turkey’s Ministry of Energy identified joint projects in Iraq as a priority.
The agreement grants TPAO access to the development and production contract in Kirkuk (DPC), which covers the initial phase of oil and gas extraction totaling more than 3 billion barrels of oil equivalent from the Baba and Avanah domes of the Kirkuk field. The contract also includes the neighboring Bai Hassan, Jambur, and Khabbaz fields, which are operated by Iraq’s state-owned Northern Oil Company.
BP and TPAO have been collaborating for over 30 years, including in the Caspian region. The companies are partners in the Azeri-Chirag-Gunashli oil complex and the Shah Deniz gas field in the Azerbaijani sector of the Caspian Sea, as well as in the Baku-Tbilisi-Ceyhan oil pipeline and the South Caucasus gas pipeline, which transport production to Turkey’s Mediterranean coast.
After the completion of these latest transactions, BP will retain a 43% stake in BP ECKL and remain the operator, ConocoPhillips will hold 42%, and TPAO will own 15%.