KRG: Major Pullback Continues; Gazprom Success Softens The Blow

Gazprom Neft, the oil-focused arm of Russia’s state gas giant, has hiked its KRG output by 40%. But at just over 7,000 b/d its Sarqala field is hardly a game-changer. Despite the fanfare that accompanied the majors’ entry to Kurdistan a few years ago, Sarqala is the sole producing asset from any of them. Total has now exited entirely, while Chevron and ExxonMobil have downsized.

Total has closed the chapter on its KRG adventure, confirming in its 2016 report that it has relinquished its assets there. It entered in 2012, lauding the abundant oil and gas reserves and the comparative advantages of the contractual framework in comparison to those in Federal Iraq. Despite some moderate finds, Total’s Kurdish endeavors never resulted in any production. It’s a similar story with US major ExxonMobil which last year relinquished three of its six exploration blocks. Chevron retains the Sarta license (60%, OMV 15%, KRG 25%) and in December said it was about to submit a field development plan, but it has said nothing about this since. (CONTINUED - 834 WORDS)