Lobster and oil

16 February 2012 By Una Galani Follow @ugalani

Kurdistan’s growing clan of millionaires is undeterred by military checkpoints, Una Galani reports. Investors in the semi-autonomous Iraqi region could get rich too if disputes over oil are resolved with Baghdad. With Turkey holding the key, pressure is building for a solution.

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French oil major Total confirmed on Feb. 10 that it was considering possible investments in the semi-autonomous region of Kurdistan and that it does not plan bid for contracts in the next licensing round held by the Iraq central government.
“From what we are hearing the conditions of the fourth bidding round in Iraq do not appear very attractive,” Total chief executive Christophe de Margerie told a press conference. “The interest in Kurdistan is that there are plenty of gas and oil reserves there and contractual conditions are better.”
Total already has a minority interest in a consortium led by PetroChina to develop and produce in the Halfaya field in southern Iraq.
Exxon Mobil was the first oil major with interests in the south to sign a deal with the semi-autonmous Kurdistan Regional Government. Exxon has not commented on the agreement but the deal was confirmed by Kurdistan’s Natural Resources Minister Ashti Hawrami in November.
The Exxon deal has been criticised by Baghdad, which challenges the authority of the semi-autonomous regional government to award oil contracts. Baghdad has banned Exxon from participating in the fourth bidding round at the end of May. It is not clear if any further action will be taken.
Exxon is in charge of developing the 8.7 billion barrel West Qurna Phase-1 oilfield and involved in a large water project in the South.

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