ERBIL, Kurdistan Region - The British ambassador to Baghdad said on Wednesday that BP will engage the Kurdistan Region regarding its controversial agreement with the Iraqi government to redevelop oil fields in the disputed province of Kirkuk. Earlier in the month, Iraq signed a memorandum of understanding (MoU) with British energy giant BP to redevelop four oilfields in Kirkuk province. The Kurdistan Regional Government (KRG) said the deal violates the Iraqi constitution as it mandates that oil and gas fields discovered before 2005 in Kirkuk and surrounding disputed areas must be jointly managed by both governments and all decisions should be made in coordination with Erbil. Stephen Hitchen told Rudaw’s Ziyad Ismail on the sidelines of the Iraq Development Platform conference in Baghdad that BP will not disregard the Kurdish government. “This is between the private company and the Region. I have no doubt at all. A month ago, I spoke with BP and I have no doubt that the company will engage the Region and invest in the area in general. I don't think there will be any problems between the company and the Region,” he said. Kurdistan Region Prime Minister Masrour Barzani last week told Reuters on the sidelines of the World Economic Forum in Davos that “the area that Baghdad is talking to BP about is a disputed territory. According to the constitution, disputed territories are not a region which can be unilaterally decided by either Erbil or Baghdad.” He added that "we are not against the development in principle but we are against the mechanism.” Zaid Elyaseri, BP’s Iraq branch chief on Tuesday said that the agreement will bolster the local economy and is expected to be finalized in February. “The idea behind this agreement is to rehabilitate and develop these for four fields and work on integrating oil and gas activities,” Elyaseri told Rudaw. The four fields include Baba Avana, Bay Hasan, Jambour, and Khabbaz, according to Elyaseri. The fields are operated by the state-run North Oil Company - one of the 16 companies comprising the Iraqi oil ministry - with its headquarters in Kirkuk. Hitchen said BP’s willingness to invest in Iraq is important. “BP is a private company, and this is the most important point. It is not government-owned and has decided to reinvest and expand its operations in Iraq. I believe this is an indicator or evidence that British companies in general are more willing to invest in the Iraqi market,” he said. “The BP decision is their own, but I think the important thing is that it shows people's confidence or investors' confidence in the country's future,” he added.
