Congratulations to Spain, the winners of the 2026 World Cup, who defeated the defending champion, Argentina. Football (soccer) fans around the world cherished witnessing the brilliance of the 39-year-old Lionel Messi, perhaps in his last World Cup.
Let’s look at two pieces of energy news from around the world.
Shangyou Nie
Editor, Well Read
ConocoPhillips Enters Kirkuk Field and Joins BP in Iraq
JHVE Photo/Shutterstock.com
The third-largest American oil company, ConocoPhillips, recently announced it has agreed to acquire a 42 percent interest in BP’s subsidiary, BP Energy Company of Kirkuk Limited. The agreement was signed during Iraqi Prime Minister Ali al-Zaidi’s visit to the United States.
BP ECKL holds the Development and Production Contract (DPC) for the Kirkuk oil field and three adjacent fields (Bai Hassan, Jambur, and Khabbaz).
DPC includes an initial gross recoverable resource of more than 3 billion barrels of oil equivalent, with 20 billion barrels of oil equivalent in the wider area around Kirkuk.
The Kirkuk field is operated by state-run North Oil Company. BP ECKL is a contractor for field rehabilitation and re-development.
According to BP, after the transaction, it will remain the majority shareholder in BP ECKL
The redevelopment project is based on increased production above its baseline, through field rehabilitation, redevelopment, and optimization activities.
The payment amount from COP to BP was not disclosed.
The deal will close before the end of 2026, with an effective date of 1 July 2026.
Background:
The Iraqi government is trying to grow its oil production from 4.3 million barrels of oil per day to 7 million barrels of oil per day.
Around 2010, Iraq opened its oil sector for foreign investment, attracting majors such as ExxonMobil, Shell, and BP. However, tough fiscal terms forced some majors, including ExxonMobil, to exit the country.
The newly elected Prime Minister Ali al-Zaidi was on an official visit to see President Trump last week, trying to attract more American investors again.
He and his delegation were also in Houston, visiting Chevron and ExxonMobil’s offices, according to a LinkedIn post from Dan Ammann, Upstream President at ExxonMobil.
Chevron is leading a consortium to potentially construct new oil pipelines from Iraq to Syria, allowing Iraqi oil to reach global markets through the Mediterranean, bypassing the Strait of Hormuz.
Chevron will also reportedly take over the operatorship for the giant West Qurna-2 and Nasiriyah oil fields, which were previously operated by Russian company Lukoil.
ExxonMobil is in the final stage of negotiations to take over the operatorship to develop the supergiant Majnoon oil field.
BP signed the original Kirkuk redevelopment contract on 26 March 2025, as it refocused on its oil and gas business.
Both BP and COP said that no “significant capital contributions” are required for the redevelopment project.
Remuneration to COP and BP will be linked to a proportionate share of incremental production and costs, which in turn is linked to the oil price.
According to the Financial Times, Tom Barrack, the U.S. special presidential envoy for Iraq and Syria, has been trying to facilitate deal-making between American companies and the Iraqi government.
What they’re saying:
“This unique redevelopment opportunity is well aligned with our disciplined investment framework, providing access to a material, high-quality and long-life resource base, comfortably meeting our cost of supply threshold,” said Ryan Lance, Chairman and CEO of COP.
“We see an opportunity to create value through a capital-efficient redevelopment program that leverages a large existing production base, while also offering meaningful exploration upside,” added Lance.
“This partnership with ConocoPhillips brings together two great teams and positions us well for the next phase of redevelopment,” said Meg O’Neill, BP’s CEO.
What to watch:
As many companies are fighting for growth opportunities, it is not clear whether there are additional reasons for BP to dilute a significant stake in the Kirkuk project to COP.
What additional Iraqi projects might COP try to get into?
When will Chevron and ExxonMobil sign definitive deals?
Sempra and TotalEnergies Ship First LNG from Baja California, Mexico
Green Oak/Shutterstock.com
In early July, Sempra and its partner TotalEnergies announced they had shipped the first LNG cargo from the ECA project in Mexico to Korean customers.
Developing LNG export terminals along the Pacific coast has been a focus for Mexico and Canada. Asian customers welcome these additional sources, especially in light of the recent closure of the Strait of Hormuz. Mexico opens a new chapter as the newest LNG exporting country.
A major milestone:
In early June, Sempra produced first LNG from Phase 1 of its Energia Costa Azul (ECO) LNG project, located in Ensenada, Baja California, Mexico.
The strategically located ECO LNG project is progressing toward full commercial operations after taking FID in 2020.
After ECO LNG enters the commercial phase, the project will be the first LNG liquefaction facility on Mexico’s Pacific Coast.
The ECA LNG is based on U.S. gas supply, with a single 3.25 million tonnes per annum train.
The project is supported by long-term sale and purchase agreements from TotalEnergies and Mitsui.
A second phase, with 12 million tonnes per annum of capacity, is under development at the same site, according to Sempra.
The bigger picture:
Sempra has a dual-basin LNG supply strategy, with projects along the U.S. Gulf Coast for the Atlantic basin and the west coast project for the Pacific basin.
It aims to become one of the largest U.S. LNG exporters, with 50 million tonnes per annum capacity.
Sempra has four projects along the U.S. Gulf Coast: Cameron LNG Phase 1 (12 MTPA), Phase 2 (8 MTPA), and Port Arthur LNG phases 1 and 2 (26 MTPA total capacity).
Sempra’s LNG projects would not need to go through any strategic choke points such as the Panama Canal.
ECO LNG is owned by Sempra Infrastructure (41.7 percent), its Mexican subsidiary IENova (41.7 percent), and TotalEnergies (16.6 percent).
TotalEnergies and Mitsui are two key off-takers for ECO LNG, with 20 years of long-term contracts for 1.7 and 0.8 million tonnes per annum, respectively.
What they’re saying:
“At a time of increased uncertainty in the global LNG trade, we are excited to begin shipping a new and reliable source of natural gas from North America’s Pacific Coast to customers around the globe,” said Justin Bird, CEO of Sempra Infrastructure, a subsidiary of Sempra.
“The start-up of ECA LNG, whose strategic location provides privileged access to Asian markets, strengthens the quality of our integrated LNG portfolio in North America,” said Patrick Pouyanné, TotalEnergies’ Chairman and CEO.
What to watch: Will other investors join Sempra for the ECO LNG phase 2?
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