Soran university

Department of engineering
Chemical engineering
Third stage
Asiignment of properties of petroleum(Oiland gas)and petroleum
products

7/10
Report: production capacity of oil and gas in
Kurdistan region-Iraq

Prepared by :Avin kamal

Supervisor:prof.dr.ibtisam kamal
Introduction:
In the mid-2000s, the Kurdistan Regional Government (KRG), with the support of
international oil companies, began investing in oil and gas infrastructure. In a
relatively short period, it succeeded in both exporting its oil to international markets
and using its produced gas to supply local power plants. However, the KRG failed to
establish a successful economic policy to manage its natural resources. Such
governance would have ensured managed growth and supported its oil and gas sector.
Instead, the KRG’s oil and gas project became a root cause of a constitutional dispute
with the Federal Government of Iraq (FGI) that resulted in political and economic
damage to the region. Regardless of its lost opportunities, the KRG can still use the
Kurdistan’s natural gas reserves to regrow its collapsed economy and achieve political
stability. However, this is dependent on its willingness to implement structural
economic reforms.

OPEC predicts that, by the year 2035, the

world’s primary energy needs will increase by
54%. This upsurge, which also reflects an 87%
increase in the demand for fossil fuels, is largely
based on the expected needs of emerging Asian
economies. In addition, forecasts also predict
that this increase in demand will be
accompanied by a rise in the price of oil from its
current cost of $100 per barrel to around $120
per barrel in 2025 and $155 per barrel by 2035.

Around 40 oil and gas companies are now

active in Kurdistan, with the world’s energy
leaders increasingly taking note of the
opportunities present in the Region. Supermajors
such as Chevron, ExxonMobil, and Total have
already established their presence in Kurdistan,
with the three companies alone holding interest
in a total of 11 oil and gas exploration blocks.
Moreover, a huge push to develop the energy
infrastructure of the Region promises to deliver
Kurdistan’s abundant energy resources to world
markets quicker and more reliably than ever
before. Indeed, the continued progress made in
exploration and production combined with
improved infrastructure is expected to go a long
way towards allowing the Kurdistan Region to
establish itself as a significant factor on the
world stage.
Oil production, demand, and exports.

In January 2014, the last month with detailed MNR figures available, Tawke
Shaikan 8.7 kbpd, Taq Taq 84 kbpd, Khor Mor 20 kbpd ,produced 38 kbpd
kbpd. On an estimated basis, average 2014 (condensate and LPG), and Khurmala 84
103kbpd), Khurmala ( production came from Tawke (91 kbpd in 2014), Taq Taq
from (approximately 100 kbpd), and Shaikan (23 kbpd), with condensate and LPG
Khor Mor (26 kbpd). Smaller amounts have been produced from Sarqala, Barda Rash,
Tika, Demir Dagh, Akri Bijeel, and Miran under long-term tests or early Swara
production systems, totalling about 50 kbpd in 2014.
By October 2015, the MNR reported that it had exported 439 kbpd from its own fields
kbpd from North Oil Company-operated fields (Kirkuk and 156 to Turkey, and
government jurisdiction78). Excluding three environs, still notionally under federal
were 487 kbpd of KRG- days of shut down due to pipeline sabotage, the figures
and ,operated crude and 174 kbpd of NOC crude. In previous deals with Baghdad
under the December 2014 revenue-sharing deal, KRG oil sales per pipeline were
federal State Oil Marketing Organization (SOMO), but by October handled by the
2015, no KRG oil had beendelivered via SOMOField developments have been held
halt in IOC back by the threat of ISIS, the region’s budgetary crisis, and the
investment, with Tawke and Taq Taq showing some declines in production.

give some examples of continuing production growth, the capacity of However, to

expanded to 200 kbpd, that of Taq Taq to 200 kbpd, Tawke field facilities is being
approved with a production target of development of HKN’s Sarsang block has been
production of 30 50 kbpd, TAQA’s Atrush field is to start in mid-2016 with initial
kbpd, Oryx Petroleum’s Hawler block is planned to reach 12–15 kbpd by the end
a development plan has been filed for Western Zagros’s Kurdamir field. ,of2016 and
proceed, these developments will be funded by the international oil Should they
smaller ones may need to raise additional capital in a companies, though some of the
Figure9 shows a forecast for KRI oil production. Assuming oil .difficult market
fields receive sufficient investment, production exports are not constrained and the
targeted by Minister Hawrami for ,could reach its target of 1 million bpd of exports
the end of 2016, during 2018 or 2019.

investment required is heavily dependent on establishing a However, the sustained

This production total excludes .to the IOCs regular and sizeable payment by the KRG
since Kirkuk ,Kirkuk, which adds another 150 kbpd of exports (and effectively more
crude is supplying KRG domestic refineries and hence freeing up other crude for
Kirkuk production could be boosted to a level above 200 kbpd with some .)export
surrounding fields of Bai Hassan, Jambur, and Khabbaz could remedial work, and the
Kirkuk capacity will decline without substantial ,add another 250 kbpd. However
formerly been providing by investment and technical assistance, which BP had
agreement with the Ministry of Oil in Baghdad.
Iraqi Kurdistan Oil Industry Facing Challenges :
As the doors opened at the Fourth Erbil Oil and Gas Exhibition this week, attendance
from the international oil giants was markedly absent. The once-coveted oil fields of
Iraqi Kurdistan are becoming more unsavory in the face of two major issues that are
dissuading international oil giants from investing in the Kurdistan oil industry: the
Islamic State and the falling price of oil.

45billion barrels

Bloomberg estimates that Iraqi Kurdistan sits on top of nearly 45 billion barrels of
crude — a resource that has long been believed to be the key to the Kurd’s financial
independence. Recently, the Kurdistan Regional Government’s oil output has reached
448,000 barrels per day

However, since the self-proclaimed Islamic State invaded Iraq last year, many of
these oil fields have been taken over by insurgents and turned into financial resources
to fund terrorism. The oil fields that remain in the hands of the Kurds are at risk of
being overrun, and oil companies see an increase in risk and waning returns for their
investments.

Erbil, the capital of the Kurdistan Regional Government, sits 50 miles from Mosul,
the largest city controlled by the so-called Islamic State. Although Erbil, the capital of
Iraqi Kurdistan, is relatively safe, oil and gas companies risk the lives of their
employees by sending them out into the fields nearby.

Falling Oil Prices

Furthermore, while oil in Iraqi Kurdistan is cheap, and easy to extract, oil prices have
fallen by 50% in the past six months. This recent development has further dissuaded
investment by large oil companies, who only a year ago, were attending the Erbil Oil
and Gas Exhibition.

Strapped for cash, and under assault from the Islamic State, the Kurdistan Regional
Government has struck a deal with Baghdad to export 550,000 barrels per day to Iraq
in return for their fair share of the Iraqi budget.

While both sides are struggling to meet their end of the agreement, foreign investment
isn’t coming any faster. Only one thing is certain — the Islamic State will have to be
defeated before the Kurds can start thinking about capitalizing on their vast natural
resources.
References:
https://www.oxfordenergy.org/wpcms/wp-content/uploads/2016/01/Kurdish-Oil-and-
Regional-Politics-WPM-63.pdf

https://www.oxfordenergy.org/wpcms/wp - content/uploads/2016/01/Kurdish- Oil- and-

Regional- Politics- WPM- 63.pdf

Iraqi Kurdistan Oil Industry Facing Challenges | The Kurdish Project

/https://thekurdishproject.org/iraqi- kurdistan- oil- industry- facing- challenges

Reshaping Kurdistan’s Regional and Global Footprint: Energy, Kurdistan Region,

)Review - Invest in Group (IIG

https://investingroup.org/review/238/reshaping- kurdistans- regional- and- global-

/footprint- energy- kurdistan

crude oil and gas in kurdistan - Google Search

https://www.google.com/search?q=crude+oil+and+gas+in+kurdistan&source=lnms&t
bm=isch&sa=X&ved=2ahUKEwiH1ej8u5HsAhVnAGMBHX_3D1QQ_AUoAXoEC
BYQAw&biw=1366&bih=640#imgrc=BfzJNudznDS2jM

https://iopscience.iop.org/article/10.1088/1755-
1315/337/1/012046/pdf?fbclid=IwAR099yoEwz09sLzkZYoIbTKGZ56f1U48YJ8LZ
AtQswXEVbnYBTMK8W5R-EE

https://iopscience.iop.org/article/10.1088/1755 -
1315/337/1/012046/pdf?fbclid=IwAR099yoEwz09sLzkZYoIbTKGZ56f1U48YJ8LZ
AtQswXEVbnYBTMK8W5R- EE