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Kurdistan's export agreement with Baghdad is deteriorating and its production capacity is rising – so the region is relying more and more on an expanding refining sector.

KRG oil deals buoyed by refinery plan

KRG oil deals buoyed by refinery plan
The Erbil refinery, about 40 kilometers west of Kurdistan's capital city of Erbil, provides the majority of Kurdistan's official refining capacity. (BEN VAN HEUVELEN/Iraq Oil Report)
By Ben Van Heuvelen of Iraq Oil Report
Published Thursday, March 29th, 2012

The Kurdistan region's refinery expansion plan is giving it a buffer against renewed oil export disputes with Baghdad and providing a much needed revenue stream for companies investing in oil fields.The foreign companies operating under controversial production sharing contracts awarded by the Kurdistan Regional Government (KRG) get around $60 per barrel under a domestic sales deal, sources said.This revenue reduces the KRG's reliance on Baghdad, strengthening the semi-autonomous region...

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