ConocoPhillips to buy 42% stake in BP Iraq oil fields

(Sharecast News) - BP said on Friday that it has agreed terms for ConocoPhillips to buy a 42% interest in BP Energy Company of Kirkuk (BP ECKL). No financial details were disclosed but BP said the deal will support the redevelopment of several large-scale oil fields in the Kirkuk area of northern Iraq.

The partnership, which is due to be signed as part of the official visit of Iraqi Prime Minister Ali Al-Zaidi to Washington, "brings together complementary capabilities and expertise, while reflecting bp's disciplined approach to capital allocation," BP said.

Chief executive officer Meg O'Neill said: "Kirkuk is a world-class resource base that can support Iraq's long-term energy ambitions while creating value for both the country and BP.

"This partnership with ConocoPhillips brings together two great teams and positions us well for the next phase of redevelopment. We're being deliberate about where we invest, backing high-quality resources that can deliver long-term value for our shareholders."

The development and production contract covers an initial phase of oil and gas production of more than 3 billion barrels of oil equivalent from the Baba and Avanah domes of the Kirkuk oil field and the adjacent Bai Hassan, Jambur and Khabbaz fields in Federal Iraq. These are all currently operated by the Northern Oil Company (NOC).

The contract area also includes additional exploration potential.

Following completion of the transaction, BP will remain the majority shareholder in BP ECKL.