High Resource Potential and Lucrative Production Sharing Contracts Alluring International Oil Companies to Invest in Kurdistan Region Despite Threat from Iraq’s Government
International Oil Companies (IOCs) such as ExxonMobil Corporation, Marathon Oil Corporation, Total S.A. and Chevron Corporation have a presence in the Kurdistan region of Iraq, which holds nearly 40 billion barrels of oil reserves. These companies have ignored the threat of penalties by the government of Iraq for entering into agreements with the Kurdistan Regional Government (KRG). Since 2005, more than 40 Production Sharing Contracts (PSCs) have been signed between KRG and global oil and gas companies. The flexible, investor-friendly and lucrative terms of investment in the Kurdistan region, compared to the tough contract terms stated by Iraq’s government, have attracted these IOCs to invest in this area.
The viewpoint explains how International Oil Companies are keen to invest in Kurdistan Region despite threat from Government of Iraq.
The viewpoint also covers how the delay in formulation of federal Hydrocarbon and Revenue Sharing Law have strained the relationship between KRG and Iraq’s Government.
Geographic Scope- Iraq, Kurdistan.
Reasons to buy
To know about how Kurdistan is poised to be a frontier oil and gas region.
To know about Kurdistan's plans to increase production to around 1 mmbd by 2015 and increase export capacity to 2 mmbd by 2019.
To know about KRG’s investor-friendly and lucrative production sharing contracts have scored over Iraq’s tough contract terms.