SULAIMANI (ESTA) — Iraq approved on Tuesday a plan by BP to spin off its operations in Iraq into a standalone company, a cabinet statement said, as the British oil major looks to shift focus to low carbon investments.
The new company, Basra Energy Ltd., would hold BP’s interest in Iraq’s giant Rumaila oil field and be jointly owned by China National Petroleum Corp, one of BP’s partners at the site.
In June, the Wall Street Journal reported that BP Plc was planning to spin off its operations in Iraq into a standalone company.
Spinning off oil and gas assets is seen as a way for BP to shift towards renewable energy.
BP and Eni in May entered into talks to merge their oil and gas operations in Angola to form one of Africa’s largest energy companies.
