ConocoPhillips to take 42 percent stake in BP Iraq oil venture

ConocoPhillips announced that it had reached a deal with BP to join the British company’s oil production venture in northern Iraq as a minority partner.

The US company said it will acquire a 42 percent interest in BP Energy Company of Kirkuk Limited. The signing was expected during Iraq Prime Minister Ali al-Zaidi’s visit to Washington.

BP ECKL holds a contract to develop the producing Baba and Avanah domes at Kirkuk and three adjacent fields, ConocoPhillips said. The company did not disclose financial terms.

ConocoPhillips said it does not expect significant capital contributions, but said remuneration will be linked to a proportionate share of incremental production and costs.

Chief executive Ryan Lance said the company saw an opportunity to create value through what he called a capital-efficient redevelopment programme using a large existing production base, with exploration potential. He said ConocoPhillips looked forward to working with BP and the Iraqi government on continued redevelopment of the fields.

BP and Iraq finalised the Kirkuk agreement in February 2025 as part of a strategy to increase production from Iraq.

The announcement came days after President Donald Trump welcomed Zaidi to the White House, where Trump hinted at likely oil deals with Iraq. The meeting took place amid renewed military escalation between the United States and Iran.

Washington and Tehran are Iraq’s main allies and have long fought a proxy war over the country. Iraq, a founding member of OPEC, has been affected by the Middle East war. It is heavily dependent on oil exports, which make up about 90 percent of its budget revenues. The vast majority of its crude travels through the Strait of Hormuz, which is at the centre of US-Iran tensions.