ConocoPhillips announced Friday that it had reached a deal with BP to join as minority partner in the British company's oil production venture in northern Iraq.
The US company will acquire a 42 percent interest in BP Energy Company of Kirkuk Limited, with the signing expected during Iraq Prime-Minister Ali al-Zaidi's visit to Washington.
BP ECKL holds a contract to develop the currently producing Baba and Avanah domes at Kirkuk and three adjacent fields, ConocoPhillips said in a statement.
ConocoPhillips did not disclose financial terms.
The company said it does not anticipate "significant" capital contributions, but remuneration will be "linked to a proportionate share of incremental production and costs."
"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," said ConocoPhillips CEO Ryan Lance.
"We look forward to working with BP and the Government of Iraq to support the continued redevelopment of these historically significant fields in an important energy-producing region."
BP and Iraq finalized the Kirkuk agreement in February 2025 as part of a strategy to boost production from Iraq.
The announcement comes a few days after President Donald Trump welcomed Zaidi to the White House, where the US president hinted at likely oil deals with Iraq.
The White House meeting came against the backdrop of renewed military escalation between the United States and Iran.
Washington and Tehran are Iraq's main allies but have long fought a proxy war over the country.
Like other oil producers, Iraq -- a founding member of OPEC -- was greatly affected by the Middle East war.
It is hugely dependent on oil exports, which make up about 90 percent of its budget revenues, and the vast majority of its crude travels via the Strait of Hormuz, which is currently at the heart of US-Iran tensions.
