LONDON, Feb 6, 2026, 15:10 (GMT)
- BP is hunting for a partner to help shoulder costs and boost production at Iraq’s Kirkuk oil field, among the Middle East’s oldest.
- Iraqi officials have placed the redevelopment plan for the field, located at the centre, at up to $25 billion.
- An agreement isn’t expected any time soon; the investor search could stretch into next year.
BP is hunting for a partner to boost output and split development costs at Iraq’s Kirkuk oil field, one of the region’s oldest, Bloomberg News reported Feb. 5, citing insiders. The search for investors is ongoing, with any deal potentially pushing into next year, the report added. BP declined to comment. 1
The Kirkuk redevelopment deal is far from minor. Last year, a senior Iraqi oil official told Reuters that BP might pour in $20 billion to $25 billion over more than 25 years under a profit-sharing arrangement. This setup would allow BP to recoup costs before splitting profits from increased output, targeting a boost to at least 450,000 barrels per day (bpd) within two to three years, up from roughly 300,000 bpd. The official also highlighted this as Iraq’s second big pact with a foreign oil giant in as many years, following a $27 billion TotalEnergies project in Basra. 2
The move comes as BP pivots back to oil and gas, stepping away from its previous focus on renewables that didn’t resonate with investors. “It’s a radical shift,” BP CFO Murray Auchincloss told Reuters at last year’s investor day. RBC Capital Markets analyst Biraj Borkhataria warned the changes “may not please investors today,” but called them the right decisions for the long haul. 3
In March, Iraq gave the final nod for BP to move ahead with redeveloping Kirkuk, targeting an initial output of 3 billion barrels of oil equivalent, BP said then. The company noted its pay would depend on incremental volumes, prices, and costs, allowing it to book a share of output and reserves “proportionate to the fees it earns” by boosting production. 4
Kirkuk is classic oil territory, still generating hefty revenue. BP played a key role in discovering oil there back in the 1920s and estimates the field contains roughly 9 billion barrels of recoverable crude, according to a report on its search for partners. 5
Baghdad’s target is clear: boost oil production capacity beyond 6 million bpd by 2029, up from roughly 4 million bpd now. Projects like Kirkuk are central to this plan. Iraq ranks as the second-largest producer within OPEC+, the group that includes OPEC members plus allies like Russia. 6
This week, RBC’s Borkhataria maintained a Neutral rating on BP, setting a target price at 500 pence, MarketScreener reported. 7
For BP, teaming up with a partner could free up capital tied to Kirkuk and lower balance sheet risk. The catch is clear: shared control and a reduced slice of any profits.
But the search for a partner isn’t sealed yet. These negotiations often stall, and the financials can pivot suddenly — oil prices fluctuate, costs shift, Baghdad tweaks terms — all of which can reshuffle the lineup of contenders.
BP is set to release its Q4 and full-year 2025 results at 7 a.m. on Feb. 10, according to its investor reporting page. The market will be watching closely for updates on funding plans for Kirkuk and whether BP has lined up any partners. 8
