bp has finalized an agreement to sell a 15% working interest in its Iraqi subsidiary, BP Energy Company of Kirkuk Limited (BP ECKL), to Türkiye Petrolleri Anonim Ortakligi (TPAO). The transaction marks another important milestone in bp’s ongoing strategy to reshape its global portfolio while supporting the redevelopment of Iraq’s significant hydrocarbon assets through strategic partnerships.
The agreement was signed during Iraqi Prime Minister Ali Al-Zaidi’s official visit to Türkiye and builds upon the Memorandum of Understanding (MoU) signed between bp and TPAO in February 2026. It also follows the earlier announcement that ConocoPhillips would acquire a 42% stake in BP ECKL, further broadening the ownership structure of the company.
Once the latest transaction is completed, bp will continue as the largest shareholder with a 43% interest, while ConocoPhillips will own 42% and TPAO will hold the remaining 15%. Despite reducing its stake, bp will retain operational involvement and continue to play a leading role in the redevelopment of the Kirkuk oil and gas assets.
According to bp, the revised ownership structure reflects its disciplined capital allocation strategy by bringing together partners with complementary technical expertise and financial capabilities. The collaboration is expected to accelerate the next phase of development in one of Iraq’s most valuable hydrocarbon regions.
The redevelopment project initially targets production exceeding 3 billion barrels of oil equivalent (bboe) from the Baba and Avanah domes within the Kirkuk oil field. The project also includes the nearby Bai Hassan, Jambur, and Khabbaz fields, which are operated by Iraq’s state-owned Northern Oil Company. These assets are expected to contribute significantly to Iraq’s long-term oil and natural gas production capacity.
bp Chief Executive Officer Meg O’Neill emphasized that Kirkuk represents a world-class energy resource capable of supporting Iraq’s future energy goals. She noted that bp looks forward to working closely with the Iraqi government and its project partners to successfully execute the redevelopment program.
The transaction forms part of bp’s broader portfolio optimization strategy initiated in early 2025. The company has been reducing investments in non-core businesses while increasing focus on its upstream oil and gas operations. Alongside this stake sale, bp recently agreed to divest minority investments held through bp Ventures to investment firm Verdane and is negotiating the sale of its UK North Sea assets to Ithaca Energy in a transaction valued at nearly $2.69 billion.
Earlier this year, bp also secured a 10% interest in ADNOC’s Bab Gas Cap project in the UAE, where it will serve as the asset lead. The development is expected to produce up to 1.5 billion cubic feet of natural gas per day, reinforcing bp’s commitment to expanding its core energy portfolio.
Impact on Product
The Kirkuk redevelopment is expected to increase long-term crude oil and natural gas production, strengthening feedstock availability for refineries and petrochemical producers. While the ownership restructuring itself will not immediately affect production volumes, the inclusion of experienced partners such as TPAO and ConocoPhillips could accelerate field development, improve operational efficiency, and enhance future hydrocarbon output. Over time, greater crude and gas availability may support the production of fuels, petrochemical feedstocks, and downstream chemical derivatives, contributing to improved regional energy security and supply stability.
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