Kurdistan ploughs ahead despite IS threat

The Kurdistan Regional Government (KRG) in Iraq has approved a major new oilfield development which is majority-owned by Hungary’s MOL. The green light was given for development of the Akri-Bijeel block, located adjacent to the region’s largest oil field – Shaikan – a year after MOL discovered sufficient oil to make the project commercially viable.

A number of oilfield operators in Iraqi Kurdistan were forced to curb production temporarily this year as the advance of Islamic State (IS) militants threatened workers’ security (see also p9). However, Alexander Dobbs, MOL Upstream told Reuters:‘MOL Group is committed to maintain its presence and increase investments in the region.’

Genel Energy has also signed an agreement with the KRG to develop two huge gas fields that could supply Turkey with gas from the winter of 2017/2018. The Miran and Bina Bawi gas fields are estimated to have combined resources of 11.4tn cf and are valued by analysts as being worth around $2.6bn. Genel is one of the main oil producers in Iraqi Kurdistan, and owns the Miran gas field. Early November it agreed to buy the remaining 36% stake in Bina Bawi from Austria’s OMV for $150mn.