ConocoPhillips to acquire 42% stake in BP's Iraq Kirkuk oil venture

Published Jul 17, 01:45 PM UTC

ConocoPhillips has agreed to acquire a 42% interest in BP Energy Company of Kirkuk Limited, marking its entry into the redevelopment of major Iraqi oil fields including Kirkuk, Bai Hassan, Jambur, and Khabbaz. The deal, expected to be signed during Iraqi Prime Minister Ali al-Zaidi's visit to Washington, gives ConocoPhillips access to over 3 billion barrels of recoverable resources with additional exploration potential. CEO Ryan Lance stated the investment aligns with the company's disciplined strategy for long-life, low-cost conventional assets. Unlike traditional acquisitions, the joint venture will be accounted for as an equity affiliate, requiring minimal upfront capital after closing. The transaction is subject to regulatory approvals and is expected to close by end of 2026, with an effective date of July 1, 2026. The deal supports Iraq's efforts to rehabilitate production from the historic Kirkuk region and reflects a broader industry trend of IOCs returning to large conventional assets.