KEY POINTS
- bp says it remains committed to the Middle East despite its asset sell-offs.
- The company is exploring new Iraqi oil export routes, including a northern route.
- bp cut net debt by more than 11% in Q2 and targets up to $9 billion from 2026 divestments.
British energy giant bp has reaffirmed its commitment to the Middle East even as it restructures its global business and sells several assets to reduce debt and focus on higher-value investments.
bp CEO Meg O’Neill said the company has no plans to withdraw from the region, signalling that Iraq will remain an important part of its upstream portfolio despite recent changes to the company’s ownership structure and wider asset base.
Speaking at the Energy Intelligence conference in London, O’Neill said bp is working with the Iraqi government to assess new options for exporting crude oil from the country.
The discussions include the possibility of developing a northern export route, which could provide Iraq with another pathway for moving its oil to international markets.
The potential northern route comes as Iraq seeks to strengthen the resilience and flexibility of its oil export infrastructure.
For bp, maintaining a strong position in Iraq could provide access to significant long-term production opportunities while supporting the company’s strategy of concentrating capital on assets capable of generating strong returns.
bp has been involved in Iraq’s oil industry for about a century. Its history in the country dates back to the 1920s, when the company played a major role in locating, developing and exporting oil from the Baba Gurgur field in Kirkuk.
Baba Gurgur was once regarded as the world’s largest oilfield, making Kirkuk an important part of Iraq’s emergence as a major oil producer.
As part of its restructuring, bp recently agreed to sell a 15% working interest in BP Energy Company of Kirkuk Limited, known as BP ECKL, to Türkiye Petrolleri Anonim Ortaklığı, or TPAO.
The transaction reduces bp’s direct exposure to the Iraqi subsidiary but does not amount to an exit from the Kirkuk project.
bp will retain a 43% stake in BP ECKL, allowing it to remain the majority shareholder and a major participant in the development of the asset.
O’Neill previously described Kirkuk as a world-class resource base with the potential to support Iraq’s long-term energy ambitions.
The development’s initial phase is expected to cover oil and gas production representing more than 3 billion barrels of oil equivalent.
