Energy
Oil & Gas
Policy
The Kurdistan Oil and Gas Law was approved on August 6, 2007, by the Kurdistan National Assembly. The Kurdistan Region Oil and Gas Law is consistent with the Iraq Constitution and requires the Kurdistan Region to share revenues with the Federal Government and other areas in Iraq. In return, other regions share revenues with the Kurdistan Region. The Kurdistan Region receives 17% of all revenues from all oil production in all of Iraq.
Development
The Kurdistan Regional Government’s achievements include the completion of two refineries; a project to transfer reservoir gas to electricity thereby solving a substantial part of the Kurdistan Region’s power needs; a constitutionally compliant Kurdistan Region Oil and Gas Law and a state-of-the art production sharing model contract for small blocks; three oil field discoveries so far, and more to come. Currently, more than 30 foreign oil companies are working in the region.
Opportunities
The Kurdistan Region sits on vast oil resources, estimated at 43.7 billion barrels of proven oil and 25.5 billion barrels of potential reserves. The region is capable of exporting over 100,000 barrels of oil per day. Investment opportunities are vast, including: oil and gas drilling and production equipment; turbines, compressors and pumps for pipeline applications; measurement and process control equipment for pipeline applications; industrial automation, control and monitoring systems for refineries, gas processing and petrochemical plants; seismic processing and interpretation; petroleum software development; sulfur removal and disposal technologies; well stimulation; and field abandonment services.
Electricity
Development
The Kurdistan Regional Government is increasing electrical energy output through foreign assistance and private investment projects and as a result, electricity capacity continues to grow.
The Kurdish provinces of Sulaimani, Erbil, and Basra are the highest rated provinces for supplying electricity in Iraq. The provinces meet anywhere from 83% to 99% of demand.
The KRG also opened two new private plants and imports electricity from Iran and Turkey. In 2009, the Dutch company Mainwind BV installed two windmills in the Kurdistan Region to gather wind data, marking the first company to invest in wind energy in Iraq. The windmills are located in Karadaq and Haroota, and after evaluation, the Kurdish government will consider further windmill purchases.
Gas Utilization
The Dana Gas project in the Kurdistan Region supplies, processes and transports natural gas to fuel local electricity generation, with the ultimate goal of supplying 300 million cubic feet per day. The project includes upstream development and production, processing with state-of-the-art LPG plants, and the transportation of natural gas through a new 180km pipeline. The gas supplies power plants near Erbil and Sulaimani, which in turn provide 1,250 MW of electricity for over 4 million Iraqi citizens. The project also provides job opportunities for more than 2,000 Iraqi nationals and comprehensive training in oil & gas operations for Iraq’s citizens.
The project is a part of “Kurdistan Gas City” – a major new gas-utilization industrial complex to be built over a 461 million square foot site, a joint venture between Dana Gas PJSC, the Middle East’s first and largest regional private-sector natural gas company, and its partner Crescent Petroleum. The project is designed to promote private sector investment in a variety of gas-related industries to further benefit the country’s citizens through training, job creation, and to spark general economic activity.
Power Plant development
In February 2010, GE signed a $200 million contract to supply power generation equipment and services for two independent power projects in the Kurdistan region of Northern Iraq. The two projects are designed to meet growing energy demands and advance the overall infrastructure in the area. Located in the Dohuk and Sulaimanih provinces of Kurdistan, both projects are being developed by Mass Global Investment Company, a developer of independent power plants.
