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- Section : Iraq
Baghdad / Obelisk: The Wall Street Journal reported, Saturday, June 12, 2021, that BP PLC is working on a plan to divide its operations in Iraq into a stand-alone company.
The magazine said the oil giant is switching its assets and investment plans in its pivot toward low-carbon energy, according to people familiar with the matter.
The magazine added that the new company will own BP’s stake in the giant Rumaila oil field in Iraq, “one of the largest oil fields in the world,” noting that it will be jointly owned by the China National Petroleum Corporation, one of the British company’s partners in the site.
The magazine added that the new entity will keep its own debt, separate from BP, and distribute profits through dividends.
The plan aims to give BP more flexibility to invest in low-carbon energy by enabling it to reduce its spending on oil and gas.
She added that the potential transformation would be of particular importance to BP because of its history in Iraq, where BP was the first international oil company to return to Iraq after the US invasion.
She concluded by saying that BP will first need to secure the agreement of the Basra Oil Company and the Iraqi National Oil Company, the State Oil Marketing Organization, or SOMO, which is part of the Rumaila Operating Organization.