BP, PetroChina form company to manage Rumaila oilfield in Iraq

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Iraq’s cabinet backs joint venture and says Basra Energy will be responsible for financing and developing the field

A general a view of the Rumaila oil field in Basra, Iraq. Picture: REUTERS/ESSAM AL-SUDANI

BP is at the beginning of transformation to slash emissions and hydrocarbon output, while ramping clean-energy production. That strategy sits uncomfortably with its presence in Iraq, one of the world’s biggest emitters of methane, a greenhouse gas more potent than carbon dioxide. In 2016, BP formed Aker BP by joining its Norwegian assets with Det Norske Oljeselskap. More recently, BP and Italy’s Eni said they were considering merging their Angolan oil, gas and liquefied natural gas assets in a bid to revive output.Iraq’s cabinet approved the restructuring and said Basra Energy will be responsible for financing and developing the field, oil minister Ihsan Abdul Jabbar said in a separate statement. The Iraqi venture is subject to other approvals.

Jabbar said in July that BP wanted to pull out of Rumaila, though he later added the government was working to improve operating conditions for foreign oil companies and stop them exiting.

 

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