Former Austrian Chancellor: EU should also look to the Kurdish Region
AK News 17 January 2011
Kurdistan has been described as a major supplier of natural energy
In a recent interview with World Security Network Foundation (WSN) on EU`s energy security, former Austrian Chancellor Dr. Wolfgang Schüssel said that Europe should also diversify sources of energy supply by looking, for instance, in the Kurdish Region of Iraq
Europe is heavily depending on Russia for its energy supply especially natural gas which was described by Schüssel, while speaking to Dr. Annette Prandzioch, Vice President of Energy Security WSN, as “a reliable and serious partner, but also sometimes a tough partner”
Kurdistan has been described as a major supplier of natural energy, but instability in Iraq and disputes between the regional and federal government could make it difficult for supplies from the region to reach Europe.
Currently, Kurdistan has a capacity of 100,000 bpd and is expected to develop its fields to increase the output to 200,000 in the coming days, according to Kurdistan Regional Government (KRG) Minister of Natural Resource, Ashti Hawrami. Based on Hawrami’s statement, the Iraqi government has included a provision in the 2011 budget of Iraq binding the KRG to exporting 150,000 bpd or the region’s 17% share in the general budget will be cut accordingly. Kurds have rejected the bill.
Europe needs additional pipelines and alternative energy distribution flows. The Kurdish part of Iraq may become alternative partner of Europe, explained Dr. Schüssel.
However, Kurdistan and Baghdad are deadlocked over the allocation of Iraq’s natural resources. Baghdad refuses to recognize contracts signed by the Kurdish regional government.
RWE, a key shareholder in the Nabucco project which is aimed to bring up to 31 billion cubic meters of gas per year to Europe through the Turkish lands – announced it had signed a cooperation deal with the KRG to develop and design its “domestic and export gas transportation infrastructure… creating a route to market for Kurdistan’s major gas reserves.”
Tagged in: Investment, Iraqi investment, Kurdistan, Kurdistan investment, Kurdistan Region of Iraq, Middle East investment, natural gas, natural gas and Kurdistan, oil, oil and Kurdistan
