BP Plc finalized an agreement with the government of Iraq to redevelop the giant Kirkuk oil fields, a deal that signals a return to the company’s Middle Eastern routes and should help to bolster production from the OPEC member.

UK energy company BP has signed an agreement with the Iraqi government to invest in several giant oilfields in Kirkuk, in a move expected to provide a big boost to the Opec producer's energy production.

Iraq and oil major BP signed a deal to redevelop four Kirkuk oil and gas fields, Iraq's state news agency reported on Tuesday.

BP (NYSE:BP) and Iraq's government have signed a deal to redevelop four Kirkuk oil and gas fields, Iraq's state news agency reported Tuesday, marking a breakthrough for the country, where production has been hampered by years of war,