BAGHDAD, Oct. 2 (Xinhua) -- The Iraqi Oil Ministry announced Thursday the formal activation of a pivotal contract with London-based oil and gas company British Petroleum (BP) to develop four oil fields and rehabilitate gas facilities in the northern Kirkuk province.
The contract, signed between BP and Iraq's state-owned North Oil Company and North Gas Company, was activated during a ceremony attended by Iraqi Oil Minister Hayan Abdul Ghani, the ministry said in a statement on Facebook.
In his speech, Abdul Ghani stressed the ministry's keenness to increase crude oil and gas production rates in Kirkuk to support the national economy and secure fuel needs, according to the statement.
An initial production rate of 328,000 barrels per day has been set as the starting point for the contract, with room for future increases through ongoing development, he noted.
The ministry statement did not mention the contract value, but Reuters said a source revealed in early February that BP might spend up to 25 billion U.S. dollars.
Iraq's economy heavily relies on crude oil exports, which account for more than 90 percent of the country's revenues. ■
