IOCs operating in the Kurdistan Region of Iraq have endured a torrid time over the past two years in which a number of worst-case scenarios have played out. The crude oil export pipeline to Turkey that was vital for monetizing their production has been shut since April 2023 while Baghdad has sought to gain control over the region’s hydrocarbons. Although the companies have managed to stay solvent by selling oil on the local market, many suffered damaging drone attacks last month (MEES, 18 July).
These developments have shown the importance of portfolio diversification, with DNO expanding a second production base offshore Norway (MEES, 23 May) and Genel entering Oman (MEES, 28 March). Yet, these IOCs are continuing to invest in their Kurdistan operations. DNO is planning a new drilling campaign to increase production at its Tawke license back up to 100,000 b/d, while London-listed Gulf Keystone plans to add 16,000 b/d of processing capacity to its Shaikan field. (CONTINUED - 1809 WORDS)
