![A general view shows Iraq's largest oil refinery in the northern town of Baiji 05 August 2003. [STAN HONDA/POOL/AFP via Getty Images]](https://i0.wp.com/www.middleeastmonitor.com/wp-content/uploads/2024/02/GettyImages-1247154496-e1725966217450.jpg?fit=1182%2C787&ssl=1)
Iraq and oil major BP have signed a deal to redevelop four Kirkuk oil and gas fields, the Iraqi state news agency reported on Tuesday. The deal marks a breakthrough for Iraq, where output has been constrained by years of war, corruption and sectarian tensions.
BP is expected to spend up to $25 billion over the lifetime of the project, a senior Iraqi oil official told Reuters in early February.
Tuesday’s signing came after the two parties agreed on “technical issues and contractual terms, including the economic model of the project,” according to a statement published by the state news agency.
The BP deal is focused on rehabilitating facilities in four oilfields and developing natural gas to support Iraq’s domestic energy needs.
READ: Iraq says it will submit updated plan to compensate for oil overproduction