BP in talks with Iraq Oil ministry over Kirkuk Oil Field

Oil and gas production giant BP has been in communication with Iraq's Ministry of Oil regarding the possibility of it potentially providing assistance in the country.

Oil and gas production giant BP has been in communication with Iraq's Ministry of Oil regarding the possibility of it potentially providing assistance in the country.

In a statement, Michael Townshend, the President of BP Iraq, said: "We have made a proposal for short-term assistance which the Ministry appears to like. We are progressing on that and it is early days".

The company declined to comment further on the nature of the proposal although a Dow Jones news report cited a senior Iraqi oil official suggesting that Iraq was considering a multi-billion dollar deal with BP to double the output from the country's giant Kirkuk oil field in northern Iraq.

Abdul Mahdy al-Ameedi, head of the Iraq oil ministry's petroleum contracts and licensing directorate, indicated that a request had been sent to the cabinet to approve contract negotiations with BP on developing the Kirkuk oil field which is reportedly suffering from massive output declines.

BP currently operates in southern Iraq, where it is developing the Rumaila oil field.

Ameedi was quoted as saying: "70% of provisions of the (possible) contract with BP to develop Kirkuk are ready".

ShareCast attempted to make contact with the Iraq Oil ministry but was unable to reach anyone for comment.

BP's share price was down 0.36% to 456.75p at 10:21 on Thursday morning.

MF

Recommended

Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022

Most Popular

Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
The ten highest dividend yields on Aim
Income investing

The ten highest dividend yields on Aim

Rupert Hargreaves picks the highest-paying dividend stocks on Aim, London’s junior market for small and medium-sized growth companies.
29 Jun 2022