BP has finalised contractual terms with the Government of Iraq to invest in the redevelopment of several giant oilfields in Kirkuk. The investment spans oil, gas, power and water sectors, with potential for further exploration.

BP has announced it will slash its renewable energy investments to focus on increasing oil and gas production. As part of what CEO Murray Auchincloss is calling a “fundamental reset”, BP has signed a deal worth $25bn (£19.

Iraq and oil major BP have signed a deal to redevelop four Kirkuk oil and gas fields, BP said on Tuesday, a breakthrough for Iraq, where output has been constrained by years of war, corruption and sectarian tensions.

BP's (NYSE:BP) deal to redevelop oil and gas fields in Iraq's Kirkuk region eventually will be viewed as of the company's most important transactions in 20 years, CEO Murray Auchincloss said Wednesday during the launch of its anticipated strategic reset.

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.

BP will redevelop 3 billion barrels of oil equivalent across five fields in Iraq, all of which are currently operated by state-owned North Oil Company.

Government of the Republic of Iraq to invest in several giant oil fields in Kirkuk providing for the rehabilitation and redevelopment of the fields, spanning oil, gas, power and water with potential for investment in exploration.

BP had stalled plans for years citing risks of political instability in the province claimed by Iraq’s autonomous region of Kurdistan. In 2013 BP signed a deal with the Iraqi government “on providing technical assistance relating to the Kirkuk oil field”, according to the company’s annual report for that year.