BP will build new power plants in Iraq as part of a contract to develop oil and gas fields in the OPEC member, an Iraqi official has said.

The agreement to develop four fields in the Northern Kirkuk Governorate will largely increase oil and gas output and enhance the operations of Iraq’s North Oil Company, said Abbas Karim, financial deputy of Kirkuk’s governor.

“The agreement is expected to largely increase output and utilise associated gas, which would contribute to electricity generation in Kirkuk through new power stations,” he told Iraq Shafaq news agency on Sunday.

He said the deal would support Kirkuk’s urgent need to revive its hydrocarbon sector and would also improve electricity and other main services.

“The provincial authorities are awaiting BP's start on implementing the contract in the near future,” Karim said.

In 2024, Iraq reached an agreement with BP to redevelop four major oil and gas fields in Kirkuk. The deal aims to increase oil production by up to 150,000 barrels-per-day and includes investments to eliminate the practice of gas flaring by 2028.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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