Iraq’s Kurdistan Regional Government made a sudden but not unexpected announcement Tuesday it had signed four more controversial oil deals. While the move highlights success in the region, it comes as the central government in Baghdad struggles to meet long-term agenda items like a national oil law.Iraq’s government reacted to the news in the same vein it has to similar deals in the past: criticizing the KRG for a perceived unilateral move in an oil sector lacking needed identity and saying it is fueling the fire separating KRG-Baghdad compromise.The KRG released a statement Tuesday that it had approved four production-sharing contracts for exploration and production in the region. It had signed two of them already, with Heritage Energy Middle East Ltd., a subsidiary of the Canadian firm Heritage Oil and Gas, and Perenco Kurdistan Ltd., a subsidiary of Perenco S.A. of France.
The other two will be announced “shortly,” the statement said, and there will be more deals to follow. Last month the KRG signed a production-sharing deal with Dallas-based Hunt Oil and at the time said more were in the pipeline.
While the KRG has little of the proven reserves, geological structures make its leaders and oil firms think there’s plenty of black gold to be found and pumped.
Read my entire article for UPI HERE.
In the oil-rich region of Kirkuk, its Arab residents are taking the government cash and leaving. This may pave the way for less tension, and make the referendum more likely where remaining voters will decide whether to join the estimated 11 billion barrels of proven Kirkuk reserves to the KRG.
But the more successful the Kurds are, the more there’s both a fear and reality of an independent nation of Kurdistan. Among the most ferocious opponents: Gen. Yasar Buyukanit, the head of Turkey’s military, itching for a fight after losing religious-based confrontations with his own government.
Stephen F. DeAngelis writes on his Enterprise Resilience Management blog about the two economies of Iraq:
Because the Arab south is embroiled in civil strife between Sunni and Shi’a Muslims, its economic develop has been stifled. In the more secure north, economic development has raced ahead. Since a train’s engine can go no faster than its caboose, the north is naturally frustrated to be held back in some areas because of its ties to the south. Oil is one of those areas. This frustration finally reached a tipping point and the Kurdish Regional Government signed an independent oil agreement that raised more than eyebrows…
DeAngelis is the founder, president and CEO of Enterra Solutions, a fairly new but fast rising company aimed at helping companies and nations succeed in the new age of terrorism and other threats.
Last week Enterra signed a memorandum of understanding with the Kurdistan Regional Government for its Development in a Box product aimed at bolstering civil society, government and the economy while protecting the region from attacks, or at least mitigating the damage.
Iraq Fuels
Iraq Slogger reports on the varying prices for gasoline in the fuel-starved Iraq, and finds most prices are above the government mandated amount.
Iraq’s Electricity
Iraq’s Electricity Ministry has billions of dollars to fund projects aimed at getting Iraqis round the clock electricity. Deborah Haynes reports for the TimesOnline there are few takers because of the violence.
Society, Security and Politics
Reuters reports that some residents of Basra find it quieter now that the British are gone. It seems removing at once a target and instigator for firefights in the country’s oil capital has alleviated some tension. But there’s plenty of air left to be sucked within the power vacuum the 2003 invasion and occupation itself created.
The Iraq Press Roundup by UPI’s Hiba Dawood.
The Institute for War and Peace Reporting has an excellent series on media in Iraq.
While this isn’t such an oil issue on the surface, it is one of those peripheral stories that will have a direct impact on how much you will know about the communities, society and politics of the communities where the oil is located.
For example, two of the stories in the series:
Climate of Fear Stymies Basra Reporters
Biasted Kirkuk Media Inflame Tensions
Correction
On Sept. 27, Iraq Oil Report said Statoil (which is StatoilHydro as of Monday), opened up an office in Irbil. The company has not opened an office there, but is still considering it.
