Last updated: 23 Feb 2017 18:27 GMT
We have over a decade’s experience of operating in the Kurdistan Region of Iraq.
The Kurdistan Region of Iraq is a vibrant, democratic society, with a population of just over five million people. Plentiful natural resources have provided the bedrock of the KRI’s development, and the Kurdistan Regional Government has a stated goal of developing these resources while maintaining democracy and economic progress along with a clean environment and wealth distribution.
The oil industry has developed rapidly in the KRI. The commencement of oil exports through the KRI-Turkey pipeline by the KRG in 2014 was a landmark event, and has helped production rise from 75,000 bopd in 2011 to over 600,000 bopd by the end of 2015.
Following the growth in the oil industry, gas reserves are key to the next phase of the KRI’s development, powering the economy and providing Turkey with a significant percentage of its gas requirements. Genel, through the world‑class Miran and Bina Bawi fields, is set to be the anchor supplier.
Despite the turmoil elsewhere in Iraq, the Kurdistan Region of Iraq remains safe and secure. The rise of ISIS has placed a significant strain on the KRI though, as refugees and internally displaced people seeking sanctuary in the KRI has boosted the population by 30%. The financial strain of this support, compounded with the fall in the oil price and the failure of Baghdad to make budgetary payments, has left the KRG struggling to pay its salary obligations and recompense oil companies for their production.
Against this difficult backdrop, the Kurdistan Regional Government has moved forward impressively with economic reforms, which are designed to reduce costs and increase revenues.
This has helped in the KRG making monthly payments for oil exports since September 2015, which have totalled over $300 million net to Genel in the period to the end of 2016. On 1 February 2016 the Ministry of Natural Resources confirmed that regular and predictable oil export payments will be based on monthly production entitlement. Additional monthly payments, initially equivalent to five percent of the gross monthly netback revenue of fields, will be made towards the recovery of the receivable.
As the economy moves from stabilisation to budget surplus, the KRG has stated its intention to increase these contractor payments and accelerate the recovery of outstanding receivables.
As the largest independent oil producer and holder of reserves in the KRI, we aim to have a positive and sustainable impact on the region, powering economic growth and working in partnership to identify and meet community needs.
bopd KRG projected oil export capacity in 2016
barrels - KRG exports in 2015