KRG Set For Modest Oil Output Gains After Painful 2016

IOCs in Iraqi Kurdistan are targeting modest production gains in 2017. But the KRG’s ability to pay remains problematic, while geological woes continue.

Iraqi Kurdistan’s oil sector suffered a turbulent 2016 marred by attacks on export infrastructure, geological downgrades and failure to pay IOCs in a timely and reliable fashion.

Despite paying off around $350mn of prepayments to its crude offtakers in January-November 2016, it still has almost $2bn outstanding which will continue to hamper efforts to pay public sector wages, not to mention the $3.5bn owed to IOCs active in the region’s upstream ( MEES, 16 December 2016 ).

Final production figures have yet to be released but MEES expects 2016 output to average around 540,000 b/d, down from 577,000 b/d in 2015. The fall is largely down to the geological downgrading of Anglo-Turkish firm Genel’s Taq Taq field but also because Norway’s DNO and London-listed Gulf Keystone Petroleum (GKP) delayed investment at their Tawke and Shaikan fields respectively due to payment concerns and export problems in February-March. (CONTINUED - 1764 WORDS)

DATA INSIDE THIS ARTICLE

chart Oryx Struggles To Boost Hawler Output (‘000 B/D)
chart Taq Taq Output Crashes (‘000 B/D), Payments Slide ($Mn) In 2016