Baghdad (IraqiNews.com) — The Iraqi Ministry of Oil announced on Saturday, August 8, 2026, the official activation of its Kirkuk oilfield development contract with British energy giant BP. The project aims to elevate crude oil production from its current capacity of 320,000 barrels per day (bpd) to a peak target of 420,000 bpd.

Ministry of Oil Spokesperson Salim Al-Rikabi stated that the contract—initially signed in September 2025—focuses on expanding crude extraction while capturing associated natural gas to eliminate routine flaring and feed domestic power generation infrastructure.

Key operational targets & metrics

• Crude Oil Output: Increasing current production from 320,000 bpd to a peak target of 420,000 bpd.
• Associated Gas Capture: Raising associated gas processing from 255 million standard cubic feet per day (scf/d) to a peak capacity of 400 million scf/d.
• Facility Modernization: Upgrading and expanding infrastructure across North Oil Company fields and North Gas Company processing plants.
• Power & Social Infrastructure: Constructing a dedicated 400-megawatt (MW) power plant, expanding local employment, funding community development initiatives, and upskilling North Oil and North Gas workforces.
• Environmental Impact: Phasing out continuous gas flaring to redirect captured methane directly into national electricity generation.

The activation of the Kirkuk project represents a major component of Iraq’s broader energy strategy to achieve natural gas self-sufficiency and reduce reliance on imported fuel.

By upgrading processing facilities managed by the North Gas Company and constructing a dedicated 400 MW power generation facility, the initiative directly addresses regional electricity shortages while reducing environmental emissions.

The partnership also reinforces BP’s operational footprint in northern Iraq, complementing its long-standing management of the Southern Rumaila field and bolstering state-led efforts to modernize national energy infrastructure.