Hydrocarbon industry in the Kurdish region of Iraq

The Kurdish region of Iraq has been an unexplored area in the global hydrocarbon industry for many years. The creation of favorable conditions for attracting international companies to the oil and gas sector of the region has determined its economic development. The discovery of new oil and gas deposits has expanded its export opportunities and strengthened its political position. Fixing the possibility of trade and licensing with foreign actors in its own legislation against the background of the blurred Federal Constitution in these matters, allowed to approve an independent economic policy of the region in the law-making field.

The occupation of the oil-rich region of Kirkuk by the Kurds in 2014 smoothed the economic problems caused by the activation of ISIS, increased military spending, the influx of refugees and falling oil prices. After the Referendum on the independence of the Kurdish region of Iraq in September 2017, relations with its closest neighbors became more complicated. Kirkuk was taken over by the Iraqi army with the help of Pro-Iranian detachments, and the Kurdish government lost control of significant oil fields that brought in half of its revenue. Some companies froze their projects or left the region, especially those whose license blocks were located in disputed areas. Other players continued to increase production at the fields being developed.

The presence of debts owed to them by the Kurdish government hinders this process and slows down access to the international gas market. Budget agreements agreed from 2018 and observed with varying success allow us to talk about the interest of Baghdad and Erbil in a peaceful solution to the contradictions. Territorial disputes with Iraq and the lack of a clear legal framework negatively affect the confidence of large companies in long-term projects. The prospects for commissioning the gas network in parallel with the oil pipeline will provide the region with additional financial injections, strengthening its economic independence and strengthening its geo-economic significance.

Keywords

Kurdistan Region of Iraq, Kurdistan Regional Government, Iraq, Kirkuk, oil, gas

Received

16.12.2020

Publication date

17.03.2021

Number of characters

26526

Cite

GOST	Maxim C. Hydrocarbon industry in the Kurdish region of Iraq // Asia and Africa Today – 2021. – Issue 2 C. 57-63 [Electronic resource]. URL: https://asaf-today.ru/S032150750013960-8-1 (circulation date: 24.04.2024). DOI: 10.31857/S032150750013960-8
MLA	Maxim, Chubukov "Hydrocarbon industry in the Kurdish region of Iraq." Asia and Africa Today 2 (2021):57-63. DOI: 10.31857/S032150750013960-8
APA	Maxim C. (2021). Hydrocarbon industry in the Kurdish region of Iraq. Asia and Africa Today (2), pp.57-63 DOI: 10.31857/S032150750013960-8

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