The Oil & Gas Year KRI 2012
A territory whose oil exploration had been largely neglected during the Ba’athist regime’s era, the Kurdistan Region of Iraq has recently been dubbed as one of the “last great onshore oil frontiers.” Awarding its first production-sharing agreement in 2002, the region has evolved from a frontier-type play, to attracting established and high-calibre upstream companies, including the groundbreaking entrance of ExxonMobil, the Kurdistan Region’s first super-major oil and gas company. The Oil & Gas Year, Kurdistan Region of Iraq 2012 examines the several dynamics composing the region’s consolidating hydrocarbons industry.
With an estimated oil reserves potential of 40 billion-45 billion barrels of oil and 2.8-5.7 bcm (100 tcf-200 tcf) of natural gas, the Kurdistan Region’s leadership is developing a strategy to reach the ambitious targets of 1 million barrels of oil per day of export capacity by 2015 and 2 million by 2019, including critical infrastructural investment in pipelines and export infrastructure.
Capitalising on its nascent oil and gas industry, the Kurdistan Region is targeting local content development and diversification of its economy beyond oil and gas, creating a nexus between hydrocarbons, power generation and industrial development.
The Oil & Gas Year, Kurdistan Region of Iraq 2012 explores the several risk categories affecting investment in the Kurdistan Region’s oil and gas industry, including the long-lasting dispute between the Kurdistan Regional Government and Iraq’s federal government over jurisdiction of the country’s hydrocarbons resources, revenue sharing and other key political issues.
With some of the largest discoveries in Iraq to date, the Kurdistan Region has moved into the production phase and is proving the potential of its hydrocarbons wealth. The region is home to Iraq’s very first discovery well, drilled in the south of the region in 1904 by the Anglo-Persian Oil Company, which paved the way to modern oil and gas exploration in Iraq. With exploration wells’ success rate of more than 70 percent, the region is set to deliver on its historically promising potential.