• 2 days Shell Oil Trading Head Steps Down After 29 Years
  • 2 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 2 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 2 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 2 days Venezuela Officially In Default
  • 2 days Iran Prepares To Export LNG To Boost Trade Relations
  • 2 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 3 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 3 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 3 days Rosneft Announces Completion Of World’s Longest Well
  • 3 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 3 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 3 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 3 days Santos Admits It Rejected $7.2B Takeover Bid
  • 4 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 4 days Africa’s Richest Woman Fired From Sonangol
  • 4 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 4 days Russian Hackers Target British Energy Industry
  • 4 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 4 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 4 days Lower Oil Prices Benefit European Refiners
  • 4 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 5 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 5 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 5 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 5 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 5 days OPEC To Recruit New Members To Fight Market Imbalance
  • 5 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 6 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 6 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 6 days GE Considers Selling Baker Hughes Assets
  • 6 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 6 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 6 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 6 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 6 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 9 days The Oil Rig Drilling 10 Miles Under The Sea
  • 9 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 9 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 9 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Alt Text

Kurdistan Proposes Immediate Ceasefire With Iraq

The Kurdistan Regional Government has…

Alt Text

Kurdistan Ready To Hand Over Oil For 17% Of Iraqi Budget

The Kurdistan Regional Government has…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Is Iraq's House Too Divided for Oil?

Is Iraq's House Too Divided for Oil?

During trading on the London stock exchange Wednesday, stock in Genel Energy took a nose dive after it announced imminent exports of Kurdish oil from Turkey. While western Iraq is in the hands of al-Qaida, recent trends suggest there's no safe investment refuge even in the Kurdish north.

Genel Energy, led by former BP boss Tony Hayward, said exports of crude oil from its operations in the Kurdish region of Iraq are "expected to commence in the near future."

Last week, the Kurdistan Regional Government of Iraq announced it expected 2 million barrels of its crude oil would be exported from the Turkish sea port of Ceyhan by month's end. That volume should double by the end of February and eventually top the 10 million barrel mark by December.

Related article: Wave of Violence Threatens Ambitious Iraqi Oil Goals

Hayward's company said it expected good things in Iraq following what he said was a "transformational year" for Genel Energy. A recent deal reached between the KRG and Turkey, in conjunction with the completion of an independent Kurdish oil pipeline, "has paved the way for steadily rising oil export volumes from Taq Taq and Tawke over the course of 2014."

Genel said it expected to produce as much as 70,000 barrels of Kurdish oil per day in 2014, nearly twice as much as last year. The market, however, shrugged it off, saying it was too early to declare victory in the Kurdish north.  The share price in Genel [GENL] was off more than 4 percent in Wednesday trading.

The Kurdish region of Iraq has been shielded from violence experienced elsewhere in the country. In Fallujah, in Iraq's western Anbar province, al-Qaida is experiencing a revival in an area where it took U.S. combat forces two attempts to rid the area of insurgents. The battle for Iraqi Prime Minister Nouri al-Maliki, seeking a third term in office in April, hit closer to home this week during fights over the 2014 budget.

Related article: The Volatile Middle East; Oil and Turmoil

Baghdad and the KRG are at odds over oil issues in the country. Last year, Kurdish members of the Iraqi Parliament boycotted budget talks and this year's talks are no less fractious. A draft $150 million budget calls for 400,000 bpd of Kurdish oil exports, far beyond what it's capable of, and threatens to withhold the KRG's share of revenues if it doesn’t meet the requirement. Both sides blame the other for delaying the measure.

Despite the legal imbroglio, there's been no shortage of interest in oil prospects. The International Energy Agency says the Kurdish north may hold 4 billion in proven reserves while KRG estimates it may hold 45 billion barrels of unproven reserves. Last week, Gazprom Neft [GZPFY], the oil arm of gas company Gazprom, said it produced first oil from its Badra oil field in eastern Wasit province, near the Iranian border.  The company said production should ramp up to 170,000 bpd by 2017 but Iraq's overall potential is restricted by the lack of export options from southern terminals.

U.S. lawmakers are debating the state of affairs in Iraq more than ten years after the invasion.  For better or worse, overall developments have been in a holding pattern since the post-war constitution was drafted in 2004. While the Kurdish north may be pulling away from the grips of power in Baghdad, both sides are still too intertwined to make unilateral gains.

By. Daniel J. Graeber of Oilprice.com




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News