Kur­dis­tan has world’s 8th oil and gas re­serves

The Kurdish Globe - - FRONT PAGE -

DOR Or­ga­ni­za­tion for Kur­dis­tan Oil and Gas In­for­ma­tion has re­cently pub­lished a re­port about Kur­dis­tan Re­gion’s oil and gas sec­tor and an­nounced that Kur­dis­tan Re­gion is the world’s 8th in terms of its oil and gas re­serves, and that it will be last place in the world to run out of oil

Ac­cord­ing to the re­port the Re­gion will ex­port 1.65 mil­lion bar­rels of oil and 10 bil­lion cu­bic feet of nat­u­ral gas dur­ing the year 2016.

The re­port is writ­ten by Dr. Ghalib Mo­hammed Ali, head of the Oil and Gas Com­mit­tee of the Suleimaniya Pro­vin­cial Coun­cil.

“What is avail­able now is not a suit­able oil and gas pol­icy in Kur­dis­tan Re­gion,” Dr. Ali says in the re­port. “Nei­ther the data and fig­ures of oil ex­ports does not match with our pocket money, nor the wealth and amount of oil re­serves we have with our wel­fare and living stan­dards of our so­ci­ety.”

The re­ports reads that ac­cord­ing to the lat­est OPEC re­port, Iraq has more than 150 bil­lion bar­rels of proved re­serves and more than 300 bil­lion bar­rels of un­proved re­serves, which makes Iraq, the sec­ond largest oil coun­try in the world af­ter Saudi Ara­bia.

Ac­cord­ing to the re­port, Kur­dis­tan Re­gion, as part of Iraq has 50 bil­lion bar­rels of proved re­serves and 80 bil­lion bar­rels of un­proved re­serves, in ad­di­tion to 8-10 tril­lion cu­bic me­ters of nat­u­ral gas re­serves. Th­ese fig­ures put Kur­dis­tan in the 8th place in the world for oil and gas re­serves.

“The Gulf re­gion, in­clud­ing Iraq and Kur­dis­tan com­monly own 65% of world’s to­tal oil re­serves, and Kur­dis­tan Re­gion will be last place on earth to run out of oil re­serves.”

The re­port adds that Kur­dis­tan has 3% of the world’s oil and gas re­serves.

It is ex­pected that the re­gion will in­crease its oil ex­ports via Turkey to 1.07 mil­lion bpd by 2016 and will also ex­port 10 bn cu­bic me­ter of nat­u­ral gas by 2020.

Dr. Ali crit­i­cizes the Kur­dis­tan Re­gional Gov­ern­ment’s (KRG) oil pol­icy and ar­gues there is a big lack of trans­parency in the oil and gas ac­tiv­i­ties of the KRG as well as a sig­nif­i­cant mis­man­age­ment.

The re­port sug­gests that the oil and gas law was sup­posed to be im­ple­ment- ed by 2008, but it is still not fully im­ple­mented.

“The Min­istry of Nat­u­ral Re­sources (MNR) should not sell oil, re­ceive the rev­enues, and dis­trib­utes them all by it­self. Oil rev­enues should be de­posited in the cen­tral bank and be man­aged and dis­trib­uted by the Fi­nance Min­istry.”

Ad­di­tion­ally, the re­port says the par­lia­ment has failed to es­tab­lish the four state-owned com­pa­nies as leg­is­lated by the oil and gas law.

Dr. Ali also crit­i­cises the agree­ments signed be­tween MNR and in­ter­na­tional oil com­pa­nies. He says out of 57 agree­ments signed with 52 in­ter­na­tional oil com­pa­nies, only one is a ser­vice agree­ment while the rest are pro­duc­tion shar­ing con­tract, by virtue of which the com­pany will share 15% of the rev­enues and the in­ter­est in the blocks. Ad­di­tion­ally, the com­pany re­tains 55% of the rev­enues at the be­gin­ning of pro­duc­tion till its cots are re­cov­ered. All th­ese terms, ac­cord­ing to Dr. Ali, make the oil com­pa­nies the first ben­e­fi­cia­ries in the con­tracts, leav­ing the gov­ern­ment and the peo­ple with fewer benefits as com­pared to the cen­tral gov­ern­ment of Iraq, which only gives ser­vice con­tracts with oil com­pa­nies.

The re­port lists other neg­a­tive as­pects of the KRG oil pol­icy and also puts for­ward some rec­om­men­da­tion for im­prov­ing the man­age­ment of nat­u­ral re­sources for the ben­e­fit of the Kur­dis­tan Re­gion, its gov­ern­ment and its peo­ple.

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