One of the major barriers in front of the energy sector in Iraq generally and Kurdistan Region ‘KRI’ specifically, is the lack of transparency. As data information is not published and accessed properly by the Ministry of natural Resources (MNR). So that’s why there might be a need to contact Deloitte Corporation and the buyers of the KRI’s oil and also asking the oil companies to obtain accurate information. In addition, Reuters agency could be good option as well as Multinational Corporation’s publication and their announcements.
The Mediterranean institute for regional studies is working throughout last three months in order to prepare an academic research establishing first base for the KRI oil and gas resources and reserve. The report is in more than 40 pages in English language (it is being translated to Kurdish and Arabic language). This effort has used 126 references lacking any Kurdish and Arabic references, the source was not able to get data from Khurmala field which operated by ‘Kar Group’ a Kurds oil serves company is absent.
A tenacious of KRI‘s energy policy
The official website of the MNR in the KRI has published only three statements in the last two years. Whereas its responsibilities require daily or weekly reports regarding the ministry’s activities, For instance, Dana Gas Company states within the next two years we will solve the KRI’s problems concerning its electricity, but they must inform us how and by which mechanisms they do that? In addition, the KRI has two main refineries, which were built by Iraq ministry of Industry, but the KRG given it to foreign companies as a surfacing (Musataha), shall they tell us why? Through the year of 2018 the Kurdistan Regional Government (KRG) has given it to foreign companies as a surfacing right (Musataha), shall they tell us why? Moreover, throughout the last years, and for specific period, the KRG had published monthly reports about the oil production, but they had not mentioned the sources of the produced and extracted oil or in another word, they had not mentioned the precise contribution from each field.
In general, the KRG in terms of transparency has recorded a lower level; the government declared that it will increase the production, When we contact the Khurmala said you have contact Kar Group, and Kar Group said it’s not our you should ask the MNR, also MNR tell us to write an official later to them and they send it to Prime Minister, then you have to wait until they respond, until they will be arrange an appointment for us with KAR group!.
Basically, the KRI’s oil sector (from 2007 to 2018) passed through five phases:
Firstly, establishment of the Ministry of natural resource on a wrong base assumption, The Kurdistan parliament has issued the law No. 22 of 2007 for the oil and gas. Regardless of the Iraqi constitution (as a central government) there are articles NO: 111, 112, which were emphasized oil and gas is the owned by the Iraqi people in all regions and provinces, While there have a discrepancy (here we cannot on it).
The second phase was (from 2008 to 2010) when the conflict broke out between KRG and central government which were related to the contracts which were signed between KRG and ExxonMobile without consulting Baghdad. However, according to the contract, three of the fields are located in the disputed areas. In 2014 a third step of the game started when ISIS crisis came, Iraqi forces has been destroyed in Kirkuk and Nineveh and subsequently the Peshmargah forces controlled that area, that’s why Kar group governed the Kirkuk Fields (from Aug 2014 to Oct 2017, has sold 300000 Barrel per day in the three major fields in Kirkuk).
The fourth steps in the KRI’s oil sector included the decrease of the oil price and escape of the companies. Moreover crashing down the Kurdistan referendum for independence and subsequently returning of Iraqi forces to Nineveh and Kirkuk in October, 16, 2017.
Currently in the KRI the fifth stage is going on, with standing in front of fully challenged situation due to lack in transparency and falls of energy policy in the region, it because there had been a great deficit in production, yet the MNR’ official website does not remove that news which was posted in (2010) confirmed that we are waiting to produce 1 million barrels in each day. Whereas it is November of 2018 they are producing only 425000 bpd. Also the KRI declared that in the Oct, 2018 has produced 325000 bpd, but they did not tell us how they increased 100000 barrels in the production in one month! Where this increase comes from? For example the scientific tested in Tawke field which were operated by Genel Energy referred to a decrease the production, And Taq Taq filed has also seen sharp decrease. When we looking for 2014 it were extracting approximately 150000bpd, in 2018 their production is only among (13000 – 15000 bpd).
How much is produced in Khurmala field?
The Khurmala field located the northern of the Kirkuk oil station, It there had a geographic intersection between the KRG and the Iraqi government, The main terrible is that the Iraq and internationally thought that the Khurmalla geographically is a part of the Kirkuk's oil fields , on the other hand the Khurmala field has operating by Kar Group such as a Kurdish oil service company to discoveries and development, this company has also inherently unlike the transparency and reveal of the production. In addition the Khurmala has interesting it because been a terminal to across all pipelines from Kurdistan Region to Faysh Khabur and international ports.
In the Kurdistan region, the political parties and all who affiliated the economic management are divided into two different directions: the first are an opportunist was usually pushing the people to opposite the authority, and courage the populace through media instruments or social media, So, there couldn’t to depend on them. The second categories are consisted of the authoritarian parties which there had accountability to the huge corruption, they were also mixing oil with nationality and ideologies, and therefore they do not see the scientific facts and doesn’t allow making creativity in the region.
Consequently, in order to get of a real data, we have two strong assumptions:
First, it would be focus the report which prepared by the Mediterranean Institute for Regional Studies entitled of ‘Stubborn Kurdish Petroleum Resources; Reality, Complexity, and Uncertainty’, it pointed out all the KRI’s fields from Garmiyan to Zakho, has produced only 250000 bpd, When the KRG stated that we produced 350000 bpd, it means the Khurmala field was producing around 150000 to 200000 bpd. In addition the Wood Mackenzie centre which worked globally on about the accurate data and sensitive issues, it had been a work about the Khurmala dome is published in November, 2018 (to read it and access the file should be pay 2300$) but there has a appear from the summery which descripted Khurmala as a major field from KRI which there could produce 200000 bpd. This is means the field was expanded in latest years.
In contrast, the second views believe that the KRG when took over the Khurmala field in 2007 all wells in the field could produce only 60000 bpd. In spite of the observers said that the KRI and Kar Group did not drilling any well and non-developed, how there increased production? Why they do not tell us about the rate of production? Sure it was knotty conditions which there had the ISIS crisis and downing the price of oil and also had/have financial crisis.
Bahrooz Jaafar, Director of Mediterranean Institute for Regional Studies (MIRS), A Ph.D candidate in the department of International Relations in Cyprus International University, Nicosia.