British report: an explosion in oil region waiting to answer questions of future
British report: an explosion in the oil region waiting to answer the questions of the future
Date: Mon 11/28/2011 8:39
Erbil / term
Put a report published by Javier Blas in the "Financial Times" British future of oil in the Kurdistan region, after a week spent in Iraq's oil fields to visit and meet with those responsible for investment and implementation of foreign managers.
He started the Kurdistan region live "explosion oil" paying optimists to the tidings that he will beat some of the OPEC countries in oil production, and the best proof of that is the success of the region in attracting the company's oil giant "Exxon Mobil" to explore oil fields despite the refusal of the federal government.
But the future on the other hand, according to Blass, will not behave path easy.
At first, due to the American writer five years ago, when the map of the region's oil almost empty, while filled with dozens of fields today.
He adds that promises a lot but the reality is more difficult, since the region is expected to achieve by 2015 the production of up to one million barrels a day.
But production in the future, following the author, is linked to reaching a political agreement between the Government of the Territory and the federal government to approve the oil law, which is long overdue since 2007.
He pointed out that while the agreement allows the "temporary" export of 175 thousand barrels, the investing companies will be willing to increase production up to one million barrels unless and until a political agreement to allow the export of oil.
What makes it worse, despite the promises of both parties that the law will determine at the end of next year, is convinced that companies investing in Erbil that this will not happen because they are tired of hearing this tone over the past five years.
The writer says that the impact of entry of the "Exxon Mobil" U.S. oil recently on the line of investment in the region is still not clearly defined.
At the time of optimists look at it from the angle that the company would force the federal government at the end of the day to accept the request of the region to develop its private sector, others contending that the deal will muddy the relationship, already shaky, between Baghdad and Erbil, and hamper a deal on the oil law.
He pointed out that the reason is that the presence of major oil companies as "Total, the French" and "Chevron" U.S. and "Eni" Italian region will give the upper hand in this area all the way.
As for the mechanism of investment, explains by saying, "There are two options given their new home - the company - to the region, either buy a piece in a field or area of discovery against the funding, and either buy a predecessor company.
And the territory's de facto support at the beginning and there is a small company, it is today prefer to see support from companies in the sector, but less effectively double."
After the arrival of the "Exxon Mobil" increased expectations contract deals of up to billions of dollars, also speaking investors in Erbil for access to the two deals first with the "Golf Keystone" the British who seek to enter the fast, the second The integration possible between the "DNA or" Norwegian and " Genel Energy "of Turkey.
Plus, described Turkey as "new friend".. Five years ago, Ankara has accused senior officials of the Kurdistan as "terrorists."
Today, sees the diplomats Turks in Kurdistan a source of energy that can feed the rapidly growing Turkish economy. In addition, they want to buy natural gas from Kurdistan to generate energy, Ankara is keen to strengthen the port of Ceyhan oil in the eastern Mediterranean.
The writer concludes at the end of his report to the Kurdish cities that live large economic boom, Verbal, the political capital of the Kurdistan region, live oil boom. The city has had, with a population of million, the opening of the first luxury hotel and there is another still under construction.
It also provides airlines for investors coming to the city new flights per month.
However, the comment by saying Plus, while the money is flowing to the region, they still seem to need to develop a service-sector to take advantage of it, in particular, they still import everything from abroad, from equipment and access to food products .. And cost in the high and growing, the prices of homes to everything else..
And it warns local and Western observers that the oil becomes a blessing in Erbil, as in Latin America, Africa and the Middle East, to the curse.
Hits: 33 - Comments: 0
"we aspire in the near future to the return of Iraqi dinar to what it was in the seventies and the beginning eighties against the dollar" - Dr. Shabibi
“I just did my job...You either get them out alive or you die trying. If you don’t die trying, you didn’t try hard enough." - Marine Sergeant Dakota Meyer, Medal of Honor recipient