As Momentum Returns To KRG Oil Sector, Repayment Change Highlight Challenges

14 May 2021 Issue: 64 / 19 By: Jamie Ingram

Momentum has been rebuilding in the E&P sector in Iraqi Kurdistan, with firms dusting off investment programs. A unilateral alteration of payment schedules from the KRG is unlikely to alter this, but will add to firms’ disgruntlement.

Multiple firms operating in the Kurdistan Region of Iraq are planning to restart drilling campaigns in the coming months amid higher oil prices and the gradual paydown of receivables by the KRG. Momentum is gradually building, and the largest foreign operator, DNO, has upgraded its production guidance for 2021.

MEES calculates that production in Iraq’s Kurdistan region is currently around 475,000 b/d (see chart 1), up by some 25,000 b/d on the full year 2020 average as operations at key producing blocks return to normality. The largest single producing field is Kirkuk’s Khurmala Dome, operated by local firm Kar, but the other assets are all run by international firms, whose continued investment is key for the region. (CONTINUED - 1918 WORDS)