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Kurdish arc: who will control the oil business of Kurdistan

Курдская дуга: кто будет управлять нефтяным бизнесом Курдистана

The decision on state independence of the region may lead not only to the formation of a new country and statehood the largest divided people in the world.

During the war in Syria and Iraq, the Kurdistan Association of investors mainly from the protracted conflict, the PKK and Turkey, and the Kurdish Peshmerga ISIS terrorists (activities prohibited on the territory of Russia). The United States supported the Kurds in these conflicts — at the end of 2015, the Americans have legalized the supply of weapons to the Peshmerga directly.

Today, the region stands on the verge of great change: the civil war on the territory controlled by Kurds in Syria, most likely close to completion, and between Iraqi Kurdistan (Kurdish autonomy within Iraq, the official name — the Kurdish region), United States (supporting the Kurds and Turkey, it seems, the solution Matures on the state independence of the region. And this can lead not only to the formation of a new country and statehood the largest divided people in the world (45 million people).

About the imminent independence of Kurdistan in a March interview with the leader of the Kurds, Massoud Barzani, he said that in Iraqi Kurdistan has already scheduled the date of the referendum on independence (it will be held until October in 2016 — up to the US elections). The Turks can maintain Barzani, but provided that if a referendum on independence will only affect Iraqi Kurdistan, and the PKK will leave the region.

If the plan is implemented Barzani, Kurdistan may be the most promising new oil region on earth for many years.

There already is a struggle for power and control over the oil fields between the ruling Barzani family and other clans. On the territory of Iraqi Kurdistan produces more than 500,000 barrels of oil per day. Several companies with mining licenses — Genel Energy (headed by former head of BP Tony Hayward), DNO and Westernzagros have on the balance of oil reserves that are still cheaper than anywhere else in the world (lower than that of Russian companies in the crisis of 1998). Oil proven and probable reserves (2P category) are less than $2 per barrel. Therefore, the oil of Kurdistan will probably be a new idea for investors, which in the coming years will Eclipse the shale boom in the United States. After all oil extraction in Kurdistan is profitable at the current price level.

Who will manage this business and whether to participate? In the region are already working canadian, British, Turkish and Norwegian oil companies and even the Russian “Gazprom Neft”.

Foreigners are attracted in Kurdistan the absence of state oil monopolies, unlike, for example, from Venezuela and Iraq. Kurdish authorities are relying on foreign companies, which can become a trump card in the struggle in the region for their independence.

Interested in Kurdistan regional leading countries, such as Iran, which has long been helping the Kurds can build a pipe to the Persian Gulf and to provide financial assistance in exchange for stakes in the fields. And the Turks, because all active and planned pipelines go through Turkey. Despite the struggle with the Kurds on its territory, Turkey signed a long-term, 50 years, contracts for the transportation of oil from Iraqi Kurdistan to the port of Ceyhan and on the supply of natural gas in volumes up to 20 bcm per year starting from 2019.

In 2013, before the start of the export pipeline, the Turkish company obtained equity interests in 13 oil fields under exploration (half of them owning intersects with U.S. Exxon Mobil). Turkey can contribute to the attraction of the region in their business, which will also help the hotel business. In the capital of Iraqi Kurdistan Erbil already built hotels, which are not inferior to, for example, Sochi.

Loyal attitude of Turkey towards the oil projects confirms that in March it has repaid $200 million to Kurdistan because of the shutdown of the pipeline in February-March this year. Therefore doubt that the Kurds and the Turks agree with the participation of the USA on the independence of Kurdistan, are left.

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