Oil sector in Kurdistan is booming

Kurd oil

News and Comment by The Kurdistan Tribune:

Ashti Hawrami, the Kurdistan Regional Government (KRG) Minister for Natural Resources, has told Reuters that the KRG’s contract with Exxon Mobil is significant because it is the first time that a company of its size and capacity has come to Kurdistan for oil exploration.

The contract was finalised on 18th October 2011 and the company is in the early stages of plans and preparations and so far it has encountered no difficulties.

The minister confirmed that the KRG is in the process of signing further contracts with several more companies, including Marso, Rapsol and OMV.

“The Iraqi government will not create any problems with these contracts because the oil revenue will be shared with the central government, even though some areas of oilfields have not been added back to KRG territory”, he told Reuters.

He confirmed that Kurdistan oil production is expected to reach 1 million barrels per day by 2015.

The KRG is about to sign a $400 million deal with Genel Energy to connect the pipeline from the Tak Tak oilfield to the main Iraqi-owned pipeline going into Turkey.

However, the KRG is also in negotiations with other companies about the building of the KRG’s own pipeline to the outside world – and this is a reason for soaring share prices of companies such as Gulf Keystone.

22 Responses to Oil sector in Kurdistan is booming
  1. AJ
    January 14, 2012 | 20:45

    I wish you the very best for the future of your contry and success of your industry. There are people In England who are happy to to invest in Kurdistan, and many have, we all look forwrd to seeing you prosper, and hopefully visiting some day soon.

  2. Mike
    January 14, 2012 | 21:15

    Exxon was offered 1 billion US dollar grant just to initiate the plan. They will also receive special concessions following the venture.

    Can KRG come clean with facts and figures? Real plundering of Kurdistan national avenues is just kicking off.

    Wake up Kurds!

    • Claire
      January 15, 2012 | 10:19

      Hi Where did you hear about the 1 billion grant to initiate the plan and what concessions will follow. I would appreciate Info and links to facts if you have. Interesting indeed.

      Thanks
      C

  3. Azad Ezzat
    January 14, 2012 | 23:15

    Kurdistan will prosper if the foreign people keep their hands off. We appreciate all the great western friends over the years, but there are also many who are in just fir their own interests and don’t care if it burns or not as long as oil keeps pumping.

  4. john
    January 15, 2012 | 11:37
  5. Rizgar Khoshnaw
    January 15, 2012 | 16:31

    While the KRG and Ashit Hawramy are happy about Exxon deal, how will the Kurdish citizens benefit? As far as he is concerned, he has seen his reward( such as his $8 million dollar home that he purchased recently).

    The Kurds need to wake up and demand their rights. The oil does NOT belong to the “leaders” but belongs to all citizens. NO matter how much oil is pumped out of Kurdistan, still the leaders will never be satisfied and want more money in their pockets.

    How many mansions are enough??

    Furthermore, why is Exxon being treated in such manner and given so much concessions? At same time the KRG and Ashti charged Norberst oil ( a Russian oil company) over $170 million just to sign a deal in Kurdistan!!! Where did this $170 million go to??

    Rizgar Khoshnaw
    Washington,DC

  6. Azad Ezzat
    January 15, 2012 | 17:24

    Great point Rizgar,
    there is no responsibility and no questioning. Government officials continue to take advantage of their posts and authority for personal gains, and all these foreign companies and personnel take every measure (even illegal and unethical) to gain financial interests for themselves. Most of these companies have inside people within the government that do the dirty work for them, as they would never officially be able to admit to those practices of bribery in public in their home countries due to laws and bindings. But our own officials have the most politically retarded mentality thinking all this attention to them is due to their own work of genius. Keep on building mansions and filling your Swiss accounts. When the public says enough is enough, you will be reminded with names such as Mubarak and Qadhaffi.

  7. دڵشاد خۆشناو
    January 15, 2012 | 21:21

    This is great stuff indeed.

    You can’t overestimate the importance of developing the Oil & Gas sector in Kurdistan for obvious reasons.

    The complaining about bribes, unethical behavior of kurdish authorities and foreign company personnel etc. is only a side issue in my view.
    We must not forget were we are coming from?
    We are just coming out of 100’s of years of oppression, death, slavery and destruction.
    The oil & gas business can get Kurdistan out of the world of irrelevance which left KUrdistan prey for Turkey, Iran and the Arabs countries.
    It is paramount that this business can “take off”.

    Some 10-15 years ago Kurds were not allowed any outside access, not even any meaningful import, forget about such strategic exports like oil.
    The most important point is that something happens in this sector, even if the price is paying too much, living with bribery, corruption and the like.

    Even some 7-8 years ago NO ONE was prepared to come to Kurdistan and no one believed that this business will go anywhere.
    Now even the largest enterprise in oil business Exxon is about to come to Kurdistan, if they are not just playing with Kurds to blackmail Maliki and the Arabs to gain better deals with them!

    In order to attract those wary and reluctant oil companies to come to Kurdistan you have to present them some very attractive conditions otherwise no one would be prepared to take the risk because it IS a risk for them to come.
    It’s by far not a done deal what happens to the oil conflict between Hewler & Baghdad and that the Kurds will have the upper hand at the end.

    That’s the way business and the free market works.
    If you are in volatile position you have to pay high interest rates in order to gain money and investments.

    At the end of the day, what counts in 10-20-50 years, is that an oil & gas industry has been developed, Kurdistan is by then producing 100.000’s, may be millions of barrels, everyday and thus providing the basis for prosperity & freedom in Kurdistan.

    It is disgusting that there is corrupt and immoral conduct but by then that would be a small price we had to pay.

    Let’s be more future oriented and not lose the sight because of the current issues that are ignorable compared to what is at stake.

    @Rizgar Khoshnaw

    Do you have any evidence of what you are alleging regarding “Ashti Hawrami’s $8 million dollar home etc.”?

    If you have any evidence then please show them.
    I will be one of the first who would support you to bring him to a court of law.
    If you don’t have any evidence then it is a matter of integrity and morality not to spread such words publicly because it is unfair and more important than that is that no one would believe you next time even if you were 100% right.

    And one last word to Non-Kurds like Mike, who are putting out some warnings.

    I don’t know what Mike’s motives are but I do know that some in the West who regard themselves as leftists or liberals have an “open bill” with Kurds because Kurds allegedly were collaborators of the “US occupation” and that at the end they will be “screwed” etc.
    First of all Kurds will not be screwed, they have been already ever since, including after 2003 but we are “still” around.
    Besides as I said it’s the choice between paying more than usual in order to have this bird take off, or being stubborn and keep sitting on our oil to be overrun by some coming mad arab government from Baghdad in the coming years.

    Some forget what our situation is. We are not the established Kuwait, Saudi Arabia or Iran. We can’t afford dictating the rules.
    May be in 10 or 20 years but not now.

    Slaw u Rez
    Dilshad Xoshnaw

    PS: I am not a spokesperson of the KRG, Ashti Harami and I am not affiliated to them in any way!

  8. Rizgar Khoshnaw
    January 16, 2012 | 00:17

    Dear Kak Dilshad and Kak Azad,

    I thank you both for sharing your thoughts with me. It is great to see that we can have a civilized and have constructive discussions even thought it is in writing. Most likely we will not be taken seriously by the KRG and the Kurdish politicians in Kurdistan, but we will still make our voices heard, just like the title of my book that I wrote 12 years ago.

    I will gladly answer all of the questions that you have brought forward, kak Dilshad.

    As far as your question about corruption and oil deals, I am ONLY speaking from real life experiences. If you have the time, you can go to and read my newly published articles (ten in total in the past month) and you will see where I am coming from and where I have been!!

    I myself had worked on oil deals, among other deals/projects, in Kurdistan for more than six years and the last company ( and I was a partner-equity holder- of this company) that I brought the KRG was valued at over $7 Billion and Ashti completely ignored us and I know why, but this is not the time to revel it all!!! It is just a matter of time before the truth will come out and everyone will see what is going on in Kurdistan. It is truly sad what I have seen in Kurdistan and how the Kurdish citizens are being abused and cheated by their so called “leaders.”

    Now you might ask, who is this Rizgar Khoshnaw that thinks he knows it all?? I know it all because I have spent the last 14 years very close, directly and indirectly, to KRG and Barzani in the US and in Kurdistan! Once again, this is not the time to tell my whole story yet.

    And if you are who I think you are, then it will be easy to verify my story!!! I think we are related. My older brother is Dr. Hewa Yahya Khoshnaw living and working in Vienna, Austria (chief Radiologist in Vienna hospital ) and if you are related to him, then of course you and I are related!!

    The reason that I am able to speak freely now is because I will NEVER go back to Kurdistan and I am safe as long as I remain in America!

    I now have a new facebook ( Iraqi Kurdistan issues, Rizgar Xoshnaw) and there you will see a great deal of proof very soon about all that I am saying and writing about the KRG and Kurdistan. I have 14 years of experience and knowledge about my region and people. PLEASE read my articles and you will understand me better and see why I am so unhappy about what is going on in Kurdistan.

    Now lets get back to Exxon and oil deals that you mentioned to me.

    When you say that Exxon is there to help and that we should be happy, I disagree. Exxon is there not for us, but to take the oil as cheap as they an and that is why Baghdad is not happy with this deal that the KRG has signed. The KRG gives too much a way to foreign oil companies and that is not the normal way to sign oil contracts with foreign companies.

    Baghdad signs “service” contracts with oil companies while the KRG signs “ownership” of the contracts and that is a huge difference and extremely attractive for oil companies to work in Kurdistan. This is why these oil companies are coming to Kurdistan.

    Furthermore, Exxon is risking absolutely nothing but in the contrary, they are receiving concessions from the KRG for coming to Kurdistan. To be honest, it does not matter what oil company comes to Kurdistan at all simply because the oil will be explored and can be explored by any oil company as long as they have at least $100 million in working capital and experience. All that you need is ONE oil rig ( cost about $40 million) to begin operation in any area in the world. It is not that difficult to do!

    Did you think about the fact that the KRG did not charge Exxon a single dollar for what is called a “signing bonus” for receiving a oil block when at the same time, you have Norbest from Russia that paid the KRG $170 million just to sign the deal??

    Finally, and sadly, no Kurd will EVER be able to bring a Kurdish politician to court in Kurdistan in any shape or way and we all know that! If you are talking about international (America or Europe) court, then that is a different story.

    Best wishes,

    Rizgar

    • Halmet
      January 16, 2012 | 03:46

      Kak Rizagar,

      Im impressed about your comment and knowledge. Brother, you need to “let the cat out of the bag”

      I read quite a few times that KRG gives 80% of ownership to those oil companies for 20 years or so?

      I guess KRG is just showing off. KRG wants to tell the world that KRG area is safe and giant American company is investing in Kurdistan

      Hope you have linked to your other articles. I’m very interested in reading them. I did locate a few on ekurd.net though, especially 400 beds hospital. This hospital is one of many jokes around in Kurdistan, especially when we refer something that can’t get done. I guess KRG has allocated budget for this project for 3 consecutive years.

      I couldn’t find your facebook?

      Supas
      Halmet

      • Rizgar Khoshnaw
        January 16, 2012 | 21:47

        Dear Kak Halmet,

        Thanks.

        There is a very popular proverb that we have in the US that goes like this: ” It is just a matter of time before the truth comes out!” For now, I am unable to tell it all for many reasons and one of them is that I am writing a book about what I have seen, experienced and know about Kurdistan that I have gathered in the past 14 years and I have been involved in personally there.

        In the mean time, believe me, I will give you plenty of interesting and unbelievable real life stories to read on my newly created facebook ( Iraqi Kurdish issues, Rizgar Xoshnaw)

        If you still can not find my facebook, you can go to ekurd.net now and you will be able to get it, I was told.

        Best,

        Rizgar

      • Rizgar Khoshnaw
        January 16, 2012 | 23:48

        Dear Kak Halmet,

        I have noticed this problem and I reported it to Facebook, I hope they can fix it. For now this is the link for my Facebook page
        http://www.facebook.com/pages/Iraqi-Kurdish-Issues-Rizgar-Xoshnaw/204054073018717?sk=wall

        Hope this will be usefull.
        Rizgar

        • Halmet
          January 20, 2012 | 14:32

          zor supas kak Rizgar. found it

    • دڵشاد خۆشناو
      January 17, 2012 | 09:38

      Berez kak Rizgar,

      many thanks for your comments and you clear arguments. I am in the process of studying your mentioned articles but my work doesn’t leave much space right now but I hope I will be able to get into your comments this evening. Thank you.

      Slaw u rez
      Dilshad Xoshnaw

      • Rizgar Khoshnaw
        January 17, 2012 | 15:17

        Dear Kak Dilshad barez,

        You are very welcome. Believe me, I have spent and sacrificed many years for my people and have been very honest in my work. If you notice that I have published about a dozen articles on ekurd.net in the past few weeks and no one within the KRG has disputed or tried to argue with me because they know that I am 100% right and sincere.

        When I tell my story and what I have done for the past 14 years for KRG and Barzani, no one will believe it because it is so unbelievable what I have done for them but I will show proof for all to see and read.

        To many people around the world, they/we measure success by how much money we make and have in our bank account, BUT in my view, I measure success of how much I have helped people and am helping the needy. This gives me a great deal of satisfaction and pleasure.

        Once more, to understand me better, please go to my newly created face book and you will see much more than I have said in written there very soon.

        Iraqi Kurdish issues, Rizgar Xoshnaw

        Best regards,

        Rizgar Khoshnaw

  9. Azad Ezzat
    January 16, 2012 | 01:29

    Kak Dilshad,
    how long are we going to use the excuse of coming out of slavery, oppression, and persecution to justify stealing the natural resources of Kurdistan? What natural rule says its OK for a revolutionary bunch to come back from the mountains, where they fought for freedom, and start building mansions, taking over public land, openly buying multimillion dollar properties and hotels? In my opinion this is what has lead the current corrupted leaders to feel comfortable in their mess. Secondly, if you are demanding someone providing proof that a current government official stole 8 million or 2 or even half a million through any deal…can we also request justification or proof where they brought all this money that has gone into their multimillion mansions with cars and foreign bank accounts, most of which is publically known and cannot be denied? For example, if we name specific officials who have magically acquired hundreds of pieces of valuable land, have build major hotels on their private names, bought shares of big foreign companies, all of which never existed prior to their taking office, can you also be fair and ask for proof where that came from? In the west, as they tell us, an official (even a president) could always be asked in public about any major questional suddenly obtained financial gain, isn’t it? I hope to get an objective and fair response from you, and not to just make excuses for the corrupted officials. With regards

    • Halmet
      January 16, 2012 | 04:06

      Kak Azad,
      The USA or any European countries have no jurisdiction over Iraqi or let’s say Kurdish officials. An American lawyer can’t bring a Kurdish official to the American court charging him with corruption and/or bribery. however, many Kurdish officials possess dual citizenship.under (Foreign Corrupt Practices Act) of the US if these officials really involve in bribery and corruption and if they offices in the USA, they can be prosecuted.

      But kak Azad, again those officials or Exxon can legalize the term to Bonuses.

  10. Baqi Barzani
    January 16, 2012 | 21:58

    Dear Pals,

    We all are sufficiently abreast of countless flaws and flouts cropping out in Kurdistan. Nevertheless, none of these concerns can effectively be addressed as long as we do not own an independent state of our own.

    Let’s proceed step by step and in order of priority. I strongly advise we should consume our energy and focus our efforts on statehood first. For everything else, we will always have plenty of time.

    • دڵشاد خۆشناو
      January 17, 2012 | 09:43

      Kak Baqi,

      I completely agree with you.

      If you are lost in the wild and have no shelter the first thing you have to take care of before the night comes, is building some shelter that keeps you safe of weather, cold and any harmful creatures.

      If you have no home and the cold seasons are coming nearer you have to take care of building a home first before thinking about any other plans because if you have no home to protect you from the cold of winter then you might not survive that winter.

      So as long as Kurds have no home, the first priority is building a home that would protect us from the cold and harsh conditions that awaits us.

      Slaw u rez
      Dilshad Xoshnaw

    • Rizgar Khoshnaw
      January 17, 2012 | 21:12

      Dear Kak Baqi,

      I agree with you 100% but as long as we have the current leaders with their mentality, we will never succeed!

      I can name may be 50% of the current Kurdish leaders that have US citizenship and Green cards. These leaders, from what it looks like, they have the interest of other countries and NOT their own nation and people! If these leaders were so secure, believe in their nation and secure of being Kurds, why then they have US passports and citizenships??

      Also, I know for a fact that most of the current leaders do NOT even see a medical doctor (or go to local hospitals in Kurdistan) in Kurdistan and they come to Washington, DC for the simplest medical procedures! As to education, that too the leaders do not believe in Kurdistan education.

      Take Barham Salih for example, his kids attend two of the best and most expensive colleges in America. One attends/attended Princeton while the other attends Colombia college in new York. The cost, which of course does not matter to Barham, is $45,290 and $37,000 annually. This of course is ONLY tuition and does not include other expense such as living cost in the US. If Barham believed in Kurdistan education, why did he send his own kids to America to study??

      So, why would the Kurdish leaders care if we have a nation or not!! I promise you, it is the Kurdish leaders that are the reason that we do not have a nation and we will not have a nation any time soon. They do not have the interest of their own people, but their own pockets.

      • Halmet
        January 20, 2012 | 14:32

        Brothers, our first task should be and only be is drafting a constitution and/or modify the current one. Once the constitution established and passed, it needs to be guarded and then we can move to other issues. Declaring independent at this moment is meaningless, especially when a country can’t sustain or survive for 2 months. Unless you have consulted with the Americans or Europeans that they will buy the Kurdish oil and find a way to get it out of Kurdistan and send us all the necessity products we need including but not limited to medications, grains, fruits and vegetables. Brothers, we just don’t produce anything. I mean NOTHING.

  11. Sasan Hanna
    January 18, 2012 | 23:02

    It just made my research paper look wonderful.

Leave a Reply

Wanting to leave an <em>phasis on your comment?

Trackback URL https://kurdistantribune.com/oil-sector-kurdistan-booming/trackback/