ConocoPhillips reaches agreement supporting redevelopment of producing oil fields in Iraq

Key Terms

development and production contract regulatory

A development and production contract is a legal agreement in which a supplier is hired to design, develop, and then manufacture a specific product or system to agreed specifications, schedule, and price. For investors it matters because these contracts create expected future revenue, capital and timing commitments, and delivery or technical risk—like a single contract that covers both the blueprint and the finished building, they influence a company's cash flow, margins, and growth outlook.

gross recoverable resource technical

An estimate of the total amount of a mineral or hydrocarbon that can be extracted from a deposit using current technology and planned methods, expressed before deductions for royalties, ownership share, or processing losses. Think of it as the full size of the cake that can realistically be cut out of the ground, not the slice that ends up on an investor’s plate. It matters to investors because it sets the starting scale for potential production, revenue and asset valuation.

equity affiliate financial

A company in which another company owns a meaningful ownership stake but does not fully control day-to-day decisions; the owner typically has significant influence and often accounts for the investment using the equity method rather than consolidating all results. Think of it like a shared project where one partner holds a large slice of the pie: investors watch equity affiliates because the investor-company’s share of profits, losses, and risks from that partner can affect reported earnings and the value of the owner’s balance sheet.

capital-efficient financial

Capital-efficient describes a company or project that achieves growth, revenue, or operational goals while requiring relatively little cash or external funding compared with peers. It matters to investors because such businesses can stretch each dollar further, reducing the need for frequent fundraising or large capital outlays and lowering the risk of share dilution; think of it like a fuel-efficient car that goes farther on less gas.

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HOUSTON--(BUSINESS WIRE)-- ConocoPhillips (NYSE: COP) today announced it has agreed to terms with bp to acquire a 42% interest in BP Energy Company of Kirkuk Limited (BP ECKL), supporting the ongoing redevelopment of four large-scale, currently producing oil fields in the Kirkuk area of northern Iraq. The agreement is expected to be signed as part of Iraqi Prime Minister Ali al-Zaidi’s official visit 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,” said Ryan Lance, chairman and chief executive officer. “Consistent with our focus on capital discipline, 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. 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 ECKL holds the Development and Production Contract (DPC) covering the currently producing and historically prolific Baba and Avanah domes of the Kirkuk oil field and three adjacent fields in Federal Iraq – Bai Hassan, Jambur and Khabbaz. The DPC includes an initial gross recoverable resource of more than 3 billion barrels of oil equivalent, to be recovered through field rehabilitation, redevelopment and optimization activities. The contract area also includes additional exploration potential.

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 and is not expected to require significant capital contributions from ConocoPhillips, with remuneration linked to a proportionate share of incremental production and costs.

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About ConocoPhillips

As a leading global exploration and production company, ConocoPhillips is uniquely equipped to deliver reliable, responsibly produced oil and gas. Our deep, durable and diverse portfolio is built to meet growing global energy demands. Together with our high-performing operations and continuously advancing technology, we are well positioned to deliver strong, consistent financial results, now and for decades to come. Visit us at www.conocophillips.com.

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Use of Non-GAAP Financial Information – This release may include non-GAAP financial measures, which help facilitate comparison of company operating performance across periods and with peer companies. Any historical non-GAAP measures included herein will be accompanied by a reconciliation to the nearest corresponding GAAP measure either within the release or on our website at www.conocophillips.com/nongaap. For forward-looking non-GAAP measures, we are unable to provide a reconciliation to the most comparable GAAP financial measures because the information needed to reconcile these measures is dependent on future events, many of which are outside management’s control as described above. Additionally, estimating such GAAP measures and providing a meaningful reconciliation consistent with our accounting policies for future periods is extremely difficult and requires a level of precision that is unavailable for these future periods and cannot be accomplished without unreasonable effort. Forward looking non-GAAP measures are estimated consistent with the relevant definitions and assumptions.

Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. We may use the term “resource” in this news release that the SEC’s guidelines prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the oil and gas disclosures in our Form 10-K and other reports and filings with the SEC. Copies are available from the SEC and from the ConocoPhillips website.

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Source: ConocoPhillips