BP signed an agreement on Thursday to boost oil output in Northern Iraq.
The oil giant aims to double existing output from the northern Kirkuk oilfields as part of the deal.
It comes after Iraqi forces managed to expel Kurdish fighters from the area in October.
Iraqi oil Minister Jabar al-Luaibi attended the ceremony to sign the agreement at the offices of Iraqi state-run North Oil Company, the current operator of the fields.
BP had previously agreed a deal to help develop the oil fields in 2013 but the plans were halted as Isis gained control over the surrounding areas in 2014.
Kirkuk is estimated to contain 9 billion barrels of oil, while the agreement is understood to be targeting production of 700,000 barrels per day.
BP shares traded 0.33% higher on Thursday as at 1021 GMT.
The stock has gained around 16% since early September, helped by rising oil prices.
Brent crude oil futures have surged from $53 per barrel to $69 per barrel over the same period.
BP shares however are so far down 3% this week, pressured by news on Tuesday that the oil giant would be taking a further $1.7bn charge related to the Deepwater Horizon oil spill.
It brings the total cost of the disaster for BP to $65bn.
BP said the latest increase was due to higher compensation settlements than expected in the fourth quarter of 2017.