(WO) — ConocoPhillips has agreed to acquire a 42% interest in BP Energy Company of Kirkuk Limited (BP ECKL), joining bp in the redevelopment of four producing oil fields in northern Iraq with more than 3 Bboe of initial recoverable resources.

The agreement, expected to be signed during Iraqi Prime Minister Ali al-Zaidi's official visit to Washington, D.C., supports the ongoing redevelopment of the Kirkuk oil field's Baba and Avanah domes, along with the adjacent Bai Hassan, Jambur and Khabbaz fields. The development and production contract also includes additional exploration potential.

"This unique redevelopment opportunity is well aligned with our disciplined investment framework, providing access to a material, high-quality and long-life resource base," said Ryan Lance, ConocoPhillips chairman and CEO. "We see an opportunity to create value through a capital-efficient redevelopment program that leverages a large existing production base, while also offering meaningful exploration upside."

The contract covers rehabilitation, redevelopment and optimization activities across the producing fields, which have historically ranked among Iraq's most significant oil assets. ConocoPhillips said the project aligns with its capital allocation strategy by providing exposure to a long-life resource base while requiring limited upfront capital.

The transaction is expected to close by the end of 2026, subject to regulatory approvals and customary closing conditions, with an effective date of July 1, 2026. Following closing, BP ECKL will be accounted for as an equity affiliate, with ConocoPhillips' returns tied to its proportionate share of incremental production and associated costs rather than significant capital contributions.