Hopeful Kurdish oil battles challenges in Iraq

Financial and political troubles are delaying the expansion of KRG oil production

A perfect storm of financial, political and security challenges is battering the Kurdish Regional Government (KRG) in northern Iraq, forcing its energy sector to hunker down. The region has stopped receiving government resources and, is funding a military campaign against Islamic State (IS) while caring for 1.8 million refugees and displaced people. Independent oil exports, deemed to be illegal by the federal government, began in June (see table). Although direct sales are bringing in more than was received from Baghdad in 1H 2015, they are still not covering the costs. Oil production is currently in the range of 650,000-700,000 barrels per day (b/d). KRG’s Natural Resources Minister Ashti H