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Friday 27 June 2014

Oil Companies in Erbil - The Most Promising Sector in Iraqi Kurdistan

After years of war, mass killings, poverty, and suffering, the Kurdistan region in northern Iraq seems to have left the difficult times behind, has turned over a new leaf and looks ahead to a brighter, more promising and more prosperous future. Among the most important contributing factors for economic growth are the 45 gas and oil companies in Erbil, the capital of the autonomous Iraqi Kurdistan.

The region has always been known for its rich oil and gas resources, but during the Saddam Hussein dictatorship the Kurdish people had never enjoyed the financial benefits from the wealth of their homeland. Instead, wars and unfair attacks had forced a large number of Kurds to seek refuge to neighboring or far away countries.

During the last decade, and after the end of the dictatorship, the Regional Kurdistan Government has been successful in attracting significant foreign investments in the oil industry, which has formed the basis for further financial development in sectors such as construction of luxury accommodation, hotels, retail, telecommunications and entertainment.

Gas and Oil Companies in Erbil

According to existing listings in Erbil company directories, there are currently 45 oil and gas companies in the city which can secure a substantial income for the region. Moreover, by building local refineries, the Kurdistan Regional Government has managed to cover the needs of the local people and local industries for different kinds of fuel, which further contributes to the growth of the economy of the region.

Today the ten most active oil companies in Erbil are: Exxon Mobil, Chevron, Total, Genel Energy, DNO, Gulf Keystone Petroleum LTD, OMV, DNO, HESS, and Oryx Petroleum. According to the Annual Financial Report of the Kurdish Ministry of Natural Resources, the contracts signed with several international oil companies concerning the production of oil and the selling of different refined products have been quite profitable in 2013. According to the Ministry, between 2007 and 2013 a profit of approximately 6 billion US dollars has helped cover the costs of a large number of projects in the Kurdistan region. At the same time, because of the region’s internal consumption rights, the local population has greatly benefitted from funding the provision of electricity and fresh water, the building of new schools, universities and hospitals in the region, improving and expanding the road system and assisting various projects in tourism and agriculture.

Untapped Oil Reserves
It has been estimated that the Iraqi Kurdistan has vast untapped oil reserves that can be in the range of more than 50 billion barrels. This could be a huge source of income for the region and a challenge for more foreign companies to invest in the gas and oil business despite the ongoing disputes between the Central Iraqi Government and the Kurdistan Regional Authority over the use of a new pipeline that carries and sells oil to Turkey without Baghdad’s consent. The pipeline extends from the Taq Taq oil field about 85 km from Erbil to the Ceyhan port in the south coast of Turkey.  Exports will gradually increase, but at the moment the crude oil will be kept in tanks in the Ceyhan port until a total capacity of 2.5 million barrels is reached. Then it will be sent to the Turkish Tupras refinery before it is exported to the international markets. This is a massive project of paramount financial importance for the Kurdistan region because it will show that Kurdistan will be able to prove its place in the Middle East and secure the peace and welfare of its inhabitants.

A Bright Future for the Young Kurds
As new financial opportunities appear, more and more young people will turn to higher education to get all the necessary qualifications in order to enter the competitive market of the numerous technology and oil companies in Erbil and in the extended Kurdistan region. At the same time the financial growth of the region will promote new advancements in all fields of science and improvements in the existing infrastructure of the area. Iraqi Kurdistan is a land of a promising bright future which can become a hub for business, education, tourism and personal development for all its inhabitants – and not only.

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