Background and Historical Context

BP’s involvement in Kirkuk dates back to October 2017, following the Iraqi federal government’s reinstatement of control over the province. Prior to this, Kurdish Peshmerga forces managed the oil fields after the Iraqi army’s withdrawal in 2014 during the conflict with the Islamic State (ISIS).

Recent Developments

In July 2024, the Iraqi Oil Ministry and BP signed a comprehensive memorandum of understanding (MoU) to rehabilitate several state-owned oil and gas fields in Kirkuk, operated by the North Oil Company (NOC). This initiative aims to revitalize the region’s energy sector, enhance production capacities, and modernize existing infrastructure.

Implications for Oil Exports

Oil exports through the Kirkuk-Ceyhan pipeline have been suspended since March 2023, following a Paris-based arbitration court ruling in favor of Baghdad against Ankara. The court determined that Turkey had breached a 1973 pipeline agreement by permitting the Kurdistan Region to independently export oil since 2014. Prior to the suspension, approximately 400,000 barrels per day were exported by Erbil, alongside an additional 75,000 barrels from Kirkuk’s oil fields.

Constitutional Considerations and Regional Tensions

The Kurdistan Regional Government (KRG) has recently accused the federal government of violating constitutional provisions by attempting to unilaterally manage oil and gas resources in disputed territories. The KRG emphasizes the need for adherence to Article 140 of the Iraqi constitution, which outlines steps to resolve disputes over areas claimed by both federal and regional authorities, including the oil-rich Kirkuk province. Successive Iraqi administrations have yet to fully implement this article, leading to ongoing tensions between Baghdad and Erbil.

Summary

BP’s forthcoming operations in Kirkuk’s oil and gas fields represent a strategic investment poised to enhance the region’s economic foundation and energy production capabilities. While this development holds promise for local infrastructure and employment, it also intersects with complex geopolitical dynamics and longstanding constitutional debates within Iraq.

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