Discussions between Baghdad and BP regarding a significant agreement to revamp Kirkuk’s oil and gas fields must involve Iraq’s semi-autonomous Kurdish region, Kurdish Prime Minister Masrour Barzani told Reuters, highlighting a potential disagreement with Iraq’s central government.
The control of oil and gas resources has long been a contentious issue between the federal government in Baghdad and the Kurdish authorities, with Kirkuk – a region abundant in hydrocarbons – at the heart of the discord.
The Kurdish authorities had control of Kirkuk between 2014 and 2017 before the federal government regained the area.
“The area that Baghdad is talking to BP about is a disputed territory. According to the constitution, disputed territories are not a region which can be unilaterally decided by either Erbil or Baghdad,” Barzani explained in an interview during the World Economic Forum in Davos.
While he clarified that the Kurdish government does not oppose development efforts, he criticised the process, stating that a trilateral meeting was needed for coordination.
A source familiar with the matter suggested that the Kurdish authorities might engage directly with BP representatives outside the framework of Baghdad’s negotiations. According to the source, the Kurds plan to leverage their connections with the U.S. government to encourage BP and Iraq to include them in the discussions.
Baghdad and BP are reportedly set to finalise a multi-billion-dollar deal encompassing four Kirkuk oil and gas fields by early February.
Barzani acknowledged the limited influence the Kurdish region has to halt the agreement, describing it as “unconstitutional.”
Previously, BP and Baghdad signed a preliminary agreement to assess the potential redevelopment of the Kirkuk fields.
BP has a historical connection to the area, being part of the consortium that discovered oil in Kirkuk during the 1920s. The company estimates the region holds approximately 9 billion barrels of recoverable oil.
In southern Iraq, BP maintains a significant presence, holding a 50% share in a joint venture at the massive Rumaila oilfield, where it has operated for over a century.
