ConocoPhillips (NYSE:COP) today announced it has agreed to terms with bp to acquire a 42% interest in BP Energy Company of Kirkuk Limited (BP ECKL), supporting the ongoing redevelopment of four large-scale, currently producing oil fields in the Kirkuk area of northern Iraq. The agreement is expected to be signed as part of Iraqi Prime Minister Ali al-Zaidi’s official visit to Washington, D.C.

"This unique redevelopment opportunity is well aligned with our disciplined investment framework, providing access to a material, high-quality and long-life resource base, comfortably meeting our cost of supply threshold," said Ryan Lance, chairman and chief executive officer. "Consistent with our focus on capital discipline, we see an opportunity to create value through a capital-efficient redevelopment program that leverages a large existing production base, while also offering meaningful exploration upside. We look forward to working with bp and the Government of Iraq to support the continued redevelopment of these historically significant fields in an important energy-producing region."

BP ECKL holds the Development and Production Contract (DPC) covering the currently producing and historically prolific Baba and Avanah domes of the Kirkuk oil field and three adjacent fields in Federal Iraq – Bai Hassan, Jambur and Khabbaz. The DPC includes an initial gross recoverable resource of more than 3 billion barrels of oil equivalent, to be recovered through field rehabilitation, redevelopment and optimization activities. The contract area also includes additional exploration potential.

The transaction is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions, with an effective date of July 1, 2026. Upon closing, the BP ECKL joint venture will be accounted for as an equity affiliate and is not expected to require significant capital contributions from ConocoPhillips, with remuneration linked to a proportionate share of incremental production and costs.