Iraq gas for Nabucco a tough deal

Austria's OMV and Hungary's MOL have launched a US$8-billion attempt to bring Iraqi Kurdistan gas to Europe through the Nabucco pipeline, by each acquiring a 10% share in Pearl Petroleum and its Khor Mor and Chemchemal gas field licence, wholly owned by U.A.E.-based Crescent Petroleum and affiliate Dana Gas.

Wading into the bitter feud over who controls Iraqi Kurdistan's oil and gas between the central government of Iraq and the Kurdistan Regional Government (KRG), OMV and MOL will now attempt to build the Nabucco coalition around much higher reserves than previously thought from Iraq.