Iraq signed a memorandum of understanding (MoU) with British energy giant BP international company to rehabilitate the oil fields in Kirkuk, the Iraqi Ministry of Oil announced on Thursday.
Iraqi Minister of Oil Jabbar Ali Hussein Al-Luiebi confirmed they will work for developing the oil fields in Kirkuk governorate to open a new page for the North Oil Company, the statement read.
The MoU aims at improving North Oil Company's role to increase the national production of oil, the ministry said.
BP will study the fields and develop the production for taking the daily figures as much as to 750 thousand barrels per day, Michael Townsend, president of BP in Iraq, was quoted as saying.
The ministry noted that Al-Luiebi and Townsend paid a visit to Kirkuk on Thursday and inspected the oil fields.
The Iraqi government asked previously BP to develop oil fields in Kirkuk in northern Iraq in October, which came under the central government's control after the illegitimate independence referendum on Sept. 25.
Oil-rich Kirkuk city had long been the subject of dispute between Baghdad and the Erbil-based Kurdish Regional Government (KRG) whose economy depends mostly on export oil.
The KRG produces around 500 thousand barrels of oil per day in 2016, which varies due to seasonal demand cycles, according to figures by KRG Ministry of Natural Resources.
By Ebru Sengul
Anadolu Agency
energy@aa.com.tr