Kurdistan Regional Government (KRG)

Iraqi Kurdistan’s oil sector received further positive news this week with a breakthrough on a long-stalled deal to increase near-term...

The Kurdish oil sector is seeing positive momentum. But modest 36,000 b/d gains at Atrush and Sarqala pales beside the 280,000 b/d lost at Kirkuk last October.

Despite its proximity to ex-Islamic State territory, an ill-fated independence referendum last September, and Baghdad’s subsequent retaking of disputed territories...

Southern exports have been maxed out at 3.46mn b/d over the last six months, and the stress is taking its toll on aging infrastructure. The 12 May elections are set to delay efforts to redress the government’s dependency on the Basra chokepoint.

Despite ongoing Erbil/Baghdad uncertainty, IOCs are advancing investments.

Baghdad’s 2018 budget would see the deficit halve to $10.6bn. But to achieve this capital spending is slated to be cut just when it is needed most. Revenues remain up in the air with a conservative oil price offset by optimistic export projections.

The Iraqi PM says a deal has been reached to use the Kurdish-controlled export pipeline to Ceyhan. No timeframe has been given, and the KRG has yet to confirm, but lack of alternatives may force an uncomfortable arrangement.

Ali Nazir al-Shatari, Deputy Director General of Iraqi state oil marketer Somo says his organization is ready to market Kirkuk...

With 280,000 b/d shut in at Kirkuk, a standoff with the KRG and $46bn in Islamic State damage, northern Iraq poses Baghdad’s biggest challenges. Relations with Ankara have been strained, but Turkey could be critical to solving these issues.