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.

DUBAI (Reuters) -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.

The state-owned North Oil Company (NOC) and British Petroleum (BP) signed on Tuesday an agreement to develop four oil fields in Kirkuk.

BP has signed a significant agreement with Iraq to redevelop four oil and gas fields in Kirkuk, aiming to increase production and support domestic energy needs. The project involves an investment of up to $25 billion and highlights a shift back to oil from renewables for BP.

UK energy company BP has signed an agreement with the Iraqi government to invest in several giant oilfields in Kirkuk, in a move expected to provide a big boost to the Opec producer's energy production.