An Iraqi oil official says the country is considering a proposal for British oil giant BP to begin work on a major oil field that lies in territory contested by Baghdad and the minority Kurds, The Associated Press reported.

The head of the Oil Ministry's petroleum contracts and licensing division, Abdul-Mahdi al-Ameedi, told The Associated Press on Thursday, January 17 that the plan aims to boost output at the Kirkuk oil field, where production has been declining.

He says BP's offer has been sent to the Cabinet for consideration, though no deal has been approved yet.

BP spokesman Toby Odone says Iraq requested a proposal for work at the field. He declined to give details, including about the scale of any potential investment.

The Wall Street Journal reported on the proposed deal earlier in the day.