International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Reforms Feasibility in Kurdistan Region Petroleum Contracts, Triggered by the New Regional Blocks Divisions
Rdhwan Shareef Salih, Dr. Akram Yamulki

Since 2003, the Kurdistan Region of Iraq has significantly developed in oil and gas sector and has signed about 60 production sharing contracts with international oil companies. There are several points and reasons in Kurdistan oil and gas sector that attract the companies to sign contracts. The Kurdistan Region holds about 45 billion barrels of oiland 2.8–5.7 trillion cubic metres of estimated gas reserves; its oil production has grown progressively and currently exports over 400,000 barrels of oil per day.Kurdistan has its own pipeline with capacity of 1 million barrels of oil per day. Undoubtedly, Kurdistan petroleum contracts are long-term contracts and may last more than 37 years, therefore, they could not easily be reformed. This study attempts to illustrate the geographical division of the blocks of Kurdistan and its reserves to examine whether or not the current situation of the blocks of Kurdistan can be used as an opportunity to reform its oil and gas contracts? This research has clarified that several IOCs have now abandoned their blocks and the KRG has around 24 open license blocks with significant data available and existing wells for most of those blocks. It is therefore a great opportunity for the KRG to reform its oil and gas contracts or to remove the contracts from the complications of several clauses or articles, even to change the type of contract.

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