ConocoPhillips to buy 42% stake in Iraqi unit from BP as U.S. seeks to weaken Iran's energy hold
BP and ConocoPhillips are set to announce billions of dollars of new investments in Iraq on Friday.
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A sign at BP Plc petrol station in London, UK, on Monday, Aug. 4, 2025.
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ConocoPhillips said on Friday that it had agreed to buy a 42% stake in BP Energy Company of Kirkuk Limited (BP EXKL), supporting the redevelopment of several large-scale and currently producing oil fields in northern Iraq.
The deal comes as the U.S. seeks to bolster Iraq's energy sector and reduce the region's reliance on routes vulnerable to Iranian disruption.
The announcement is expected to be signed as part of this week's official visit of Iraqi Prime Minister Ali Al-Zaidi to Washington D.C.
"This unique redevelopment opportunity is well aligned with our disciplined investment framework, providing access to a material, high-quality and long-life resource base, comfortably meeting our cost of supply threshold," ConocoPhillips CEO Ryan Lance said.
The transaction is set to close by the end of the year, ConocoPhillips said, subject to regulatory approvals and other closing conditions.
BP ECKL holds the development and production contract covering the Baba and Avanah domes of the Kirkuk oil field in northern Iraq, as well as three adjacent fields in Bai Hassan, Jambur and Khabbaz.
"Kirkuk is a world-class resource base that can support Iraq's long-term energy ambitions while creating value for both the country and bp," Meg O'Neill, CEO of BP, said in a statement.
The deals come as the U.S seeks to expand investment in Iraq's energy sector, boost the country's oil production and diversify export routes vulnerable to regional disruption.
The Strait of Hormuz handled roughly a fifth of global oil before the war broke out and has become an increasingly important focus for energy markets after renewed tensions between the United States and Iran.
BP has a history in Iraq dating back about a century and has in recent years focused on the giant Rumaila oilfield. In 2025, the company finalized an agreement with Baghdad to redevelop oil and gas resources in Kirkuk, covering the Baba and Avanah domes of the Kirkuk field and the nearby Bai Hassan, Jambur and Khabbaz fields.
Iraq is courting some of the world's largest energy-services and industrial companies as it seeks to expand oil and gas production and accelerate development of its natural gas resources.
Al-Zaidi met representatives from Halliburton, Shell, Honeywell, Weatherford and Baker Hughes in Houston on Thursday, with talks covering investment, technology and potential participation in large energy projects, according to his office.
— CNBC's Emma Graham contributed to this report.
