BP Shares Tumble on $25 Billion Kirkuk Megadeal as $350M Trade Volumes Rank 291st

On September 3, 2025, BP shares closed down 2.19% with a trading volume of $0.35 billion, ranking 291st in the market. The stock’s decline followed developments in its $25 billion Kirkuk oilfield redevelopment agreement with Iraq. BP engineers have commenced initial assessments at four strategic oilfields in northern Iraq as part of the long-term partnership, which includes rehabilitating infrastructure and production facilities for Iraq’s state-owned North Oil and North Gas Companies.

The agreement, finalized in March 2025, aims to boost oil and gas output through a 25-year profit-sharing arrangement. The initial phase targets over 3 billion barrels of oil equivalent in production, with potential expansion to 20 billion barrels across the Kirkuk region. BP CEO Murray Auchincloss emphasized the alignment with the company’s upstream growth strategy, while Iraq seeks to increase its production capacity to 6 million barrels per day by 2029.

Current Kirkuk output stands between 285,000 and 330,000 barrels per day, primarily for domestic use. The partnership is projected to raise production by 50,000–100,000 barrels per day in the coming years, with plans to recover flared gas to enhance electricity generation. The project also includes exploration opportunities in adjacent fields such as Bai Hassan, Jambur, and Khabbaz.

Historical performance analysis indicates the deal’s potential to stabilize BP’s upstream portfolio. However, near-term market reactions remain influenced by geopolitical risks and operational execution timelines in the region.