Crude oil production in the Kurdistan Region of Iraq continues to rebound from last year’s export pipeline closure as IOCs consolidate local sales. The latest round of quarterly updates from the region’s upstream operators showcased not just increased production, but also slightly stronger prices as firms adjust to the new normal.

Although local sales are priced well below international market rates, firms are still able to make profits under the current arrangement. Most importantly, the local sales mechanisms guarantee up-front payment, which is a far cry from the previous status quo where firms handed over volumes to the Kurdistan Regional Government (KRG) to market internationally, and routinely suffered payment delays. (CONTINUED - 1118 WORDS)