Oil & Gas
Much like the rest of Iraq, the Kurdistan Region is blessed with an abundance of natural resources, especially oil and gas.
With the recent announcement of our first ever oil exports from the Kurdistan Region, we have quashed all doubts about whether or not we will be a responsible steward of oil resources located in our region on behalf of all the people of Iraq. Currently the Kurdistan Region is producing 100,000 barrels of oil per day. As production from other fields become available, total production available for export should increase to 450,000 barrels per day by the end of 2011, and to 1,000,000 barrels per day within four years.
The development of oil and gas in Kurdistan is fully supported under Iraq’s permanent constitution. The constitution of Iraq provides that regions and governorates reserve all powers that are not exclusive to the federal government. Article 110 of the constitution is the only article that sets forth the exclusive authority of the federal government. There is no provision in article 110 for the management of hydrocarbon, or any other resources. In fact, management of Iraq’s natural resources is considered a shared power, between the oil producing regions and the federal government.
We have exercised our authority, and are operating under the Regional Governments Hydrocarbons law to develop the oil and gas sector in Kurdistan. Through our visionary policies, and transparent processes we have succeeded in attracting more than 35 investors from 15 countries to enter into 30 contracts to date.
We are hoping that the federal government will work with us to pass a country wide hydrocarbons law that will hopefully attract the necessary investment incentives to international oil operators and investors to come in and partner with all of Iraq to boost national production and maximize returns for all the people of Iraq.
Not just oil, Gas too!
The Zagros belt in Kurdistan is rich in natural gas as well as oil, and there have been a lot of gas discoveries. Gas potential has attracted some of the region’s leading players, including those that are leading on the Nabucco project. The Kurdistan Region, with a very large gas reserve, is strategically located very close to the European market. Many international oil and gas experts believe Kurdistan has the potential to serve as feedstock to the Nabucco pipeline.
