ConocoPhillips (NYSE: COP) has agreed to acquire a 42% interest in BP Energy Company of Kirkuk Limited (BP ECKL) from bp, giving it a stake in the redevelopment of four producing oil fields in northern Iraq's Kirkuk area.

BP ECKL holds a Development and Production Contract covering the Baba and Avanah domes of the Kirkuk oil field, as well as three adjacent fields — Bai Hassan, Jambur and Khabbaz. The contract includes an initial gross recoverable resource of more than 3 billion barrels of oil equivalent, with additional exploration potential in the contract area.

The agreement is expected to be signed during Iraqi Prime Minister Ali al-Zaidi's official visit to Washington, D.C. The transaction is expected to close by the end of 2026, subject to regulatory approvals and other customary closing conditions, with an effective date of July 1, 2026.

Upon closing, the BP ECKL joint venture will be accounted for as an equity affiliate. ConocoPhillips said the arrangement is not expected to require significant capital contributions, with remuneration linked to a proportionate share of incremental production and costs.

Ryan Lance, chairman and chief executive officer, said the 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."