Government documents have shown that Iraqi Kurdistan’s oil production could almost halve by 2027 if there is no new research or major investment in the sector.
Diplomats, officials and energy experts said the sharp decline in oil revenues, a lifeline for the Kurdistan Regional Government, could exacerbate the economic problems of the region, which is already struggling financially in light of the instability in Iraq.
Kurdistan’s output could rise to 580,000 barrels per day within five years if investments are made optimally, meaning 530,000 barrels per day would be available for export, according to the documents.
But documents that have not previously been made public show that without new investment, the semi-autonomous region will only have 240,000 barrels a day to export as old wells run out.
According to the Iraqi constitution, the region is entitled to receive a portion of the national budget. But the deal collapsed in 2014 when the Kurds wrested control of the Kirkuk oil fields, the main fields in northern Iraq, from the Islamic State and began selling oil there themselves.
In 2018, Iraqi forces regained disputed territories, including the oil city of Kirkuk, and Baghdad resumed some payments to the budget, but intermittently. This year, two payments worth 200 billion Iraqi dinars ($137 million) were sent to the region.
Source: El Iktisad
