ConocoPhillips announced Friday that it has agreed to buy a 42% stake in BP Energy Company of Kirkuk Limited, a move that puts major American oil investment into northern Iraq at a time when the U.S. is working to weaken Iran's grip on regional energy routes.
The deal was reported by CNBC. The announcement is expected to be signed during the official visit of Iraqi Prime Minister Ali Al-Zaidi to Washington, D.C. this week. The transaction is subject to regulatory approvals and other closing conditions, with a target closing date by the end of 2026.
BP Energy Company of Kirkuk Limited holds the development and production contract for the Baba and Avanah domes of the Kirkuk oil field in northern Iraq. The contract also covers three adjacent fields: Bai Hassan, Jambur, and Khabbaz.
ConocoPhillips CEO Ryan Lance described the opportunity in direct terms. "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," Lance said.
BP CEO Meg O'Neill also commented on the transaction. "Kirkuk is a world-class resource base that can support Iraq's long-term energy ambitions while creating value for both the country and bp," O'Neill said in a statement.
BP has operated in Iraq for roughly a century. In recent years the company has focused on the giant Rumaila oilfield in the south. In 2025, BP finalized an agreement with Baghdad to redevelop oil and gas resources in Kirkuk, setting the stage for the current deal with ConocoPhillips.
The broader context is the ongoing conflict between the United States and Iran. The Strait of Hormuz, which Iran has refused to reopen to free navigation, handled roughly a fifth of global oil before the war broke out. The U.S. has been conducting airstrikes on Iranian targets for six consecutive days as of Friday, and oil prices have risen nearly 13% over the last five trading days as markets react to the disruption.
Iraq is actively courting large energy companies to expand its production and reduce its own exposure to routes vulnerable to regional conflict. On Thursday, Prime Minister Al-Zaidi met with representatives from Halliburton, Shell, Honeywell, Weatherford, and Baker Hughes in Houston. Those talks covered investment, technology, and potential participation in large energy projects, according to his office.
The ConocoPhillips deal is one of the more concrete outcomes so far from that diplomatic push. By securing a major American company's involvement in Kirkuk, Iraq gains both capital and a political signal that Washington is invested in its energy future. For ConocoPhillips, the deal adds a long-life resource base in a region where the U.S. government has strong strategic interest in seeing production grow.
The transaction still requires regulatory sign-off before it becomes final.
