Turkish state oil company TPAO has acquired a 15% stake in BP-operated oil fields in Iraq's Kirkuk region, marking Turkey's entry into one of the Middle East's most significant hydrocarbon-producing areas, the country's Energy and Natural Resources Ministry said on July 28.

The agreement was signed in Ankara by TPAO General Manager Cem Erdem and BP Vice President for Upstream Business Development Andrew McAuslan, in the presence of Turkish Energy Minister Alparslan Bayraktar.

The project covers the Baba and Avanah domes of the Kirkuk oil field, as well as the adjacent Bai Hassan, Jambur and Khabbaz fields. The concession is estimated to hold more than 3 billion barrels of oil equivalent in hydrocarbon resources in its initial phase, with significant additional exploration potential.

Turkish President Recep Tayyip Erdogan described the agreement as a historic step and said energy cooperation remained a key pillar of bilateral relations. He noted that the Iraq-Turkey Crude Oil Pipeline Agreement expired on July 27 and said both sides now aim to negotiate a broader framework for energy cooperation.

Bayraktar called the deal a major milestone in Turkey's efforts to expand TPAO's global footprint through partnerships with international energy companies, adding that it represented progress toward making TPAO a company producing 1 million barrels of oil and natural gas per day. The consortium aims to develop reserves estimated at around 3 billion barrels while increasing production from the Kirkuk fields.

Bayraktar also met separately with Iraqi Oil Minister Basim Mohammed Khudhair and Electricity Minister Ali Saadi Waheeb. He said the ministers reaffirmed their commitment to making full use of existing energy infrastructure and discussed concrete projects to deepen cooperation in oil, natural gas and electricity transmission.