In 2009, BP secured a contract with Iraq’s South Oil Company to develop the Rumaila oil field. Recently, BP activated a $25 billion deal to develop five oil fields in Iraq’s Kirkuk region, with a production target of 328,000 bpd, expected to rise to at least 450,000 bpd within two to three years.

The deal between BP and Iraq’s Oil Ministry aims to increase production and plateau figures over 25 years, with the potential for renewal. Estimated to hold up to 9 billion barrels of oil reserves, the five fields could have additional reserves. BP will also focus on capturing associated gas, with a target of 400 mmcf/d. This deal is strategically important in geopolitical terms to counter Iran’s influence in the region.

The broader implications of the deal involve Western efforts to reduce Iran’s influence in the region. Iran has historically exerted power over Iraq and other countries through proxies, forming a ‘Shia Crescent of Power’. By developing oil fields in Iraq, the West aims to counter Iran’s strategic advantages and weaken its influence in the Middle East. Chinese firms control over a third of Iraq’s oil reserves and two-thirds of production. The West aims to reduce Iraq’s reliance on Iran for energy, imposing escalating sanctions if Iraq doesn’t develop its own resources. TotalEnergies and BP offer a path for Iraq to increase exports and become a major energy exporter.

BP’s presence in Iraq’s Kirkuk region could benefit the West strategically. The region is crucial for monitoring operations against Iran. The US and UK want the Kurdistan Region to cut ties with Chinese, Russian, and Iranian companies linked to the Islamic Revolutionary Guards Corps. Iraq’s alignment with China and Russia threatens Western influence in the Middle East.

Read more at Yahoo Finance: BP’s US$25bn Five-Field Megadeal In Iraq Is Finally Activated