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BP to Sell 42% Stake in Iraq's Kirkuk Venture to ConocoPhillips

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BP (BP) agreed to sell a 42% interest in BP Energy Company of Kirkuk to ConocoPhillips (COP) to support redevelopment of northern Iraq's Kirkuk oil fields, BP said in a statement on Friday.

The companies will sign the agreement during Iraqi Prime Minister Ali Al-Zaidi's official visit to Washington, DC. BP said the partnership combines the companies' expertise while supporting its disciplined capital allocation strategy.

"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," said chief executive officer Meg O'Neill.

The initial phase of the development and production contract targets more than 3 billion barrels of oil equivalent from the Baba and Avanah domes of the Kirkuk field, along with the nearby Bai Hassan, Jambur and Khabbaz fields.

Beyond the producing assets, the agreement includes additional exploration potential. Northern Oil currently operates all of the fields covered under the contract, BP said.

After the transaction closes, BP will retain a majority stake in BP Energy Company of Kirkuk and remain a key member of the contractor group.

The transaction remains subject to regulatory approvals. BP said the agreement will not change the contract framework, current operatorship or the planned transition to a new operating organization.

BP said BP Energy of Kirkuk will earn fees based on production, prices and costs. The company also does not expect the joint venture to require significant capital contributions.

Price: $41.68, Change: $+0.59, Percent Change: +1.45%

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