ERBIL - Crude oil production capacity of Kurdistan Region has hit 300,000 bpd, according to the Kurdistan Regional Government's Natural Resources Minister Ashti Hawrami.
Mr Hawrami was speaking at an energy conference held by the CWC Group in London. Hawrami said Kurdistan is not producing that amount despite capacity to do so due to disputes with Baghdad. Kurdistan Region has suspended exports of crude oil through Baghdad's pipeline.
Hawrami has also told the conference that the capacity of Kurdistan's oil production is expected to further increase to 400,000 bpd by the end of 2012.
Kurdistan Region is aspiring to enhance its oil production capacities to reach one million bpd by the end of 2015 and 2 million bpd by 2020.
Kurdistan Region's proven oil reserves have been put at about 40 billion barrels, up from one billion in 2007, the minister has said.
Currently, some 40-50 international energy companies are working the semi-autonomous Kurdish region under production-sharing contracts (PSC).
Kurdistan Region has been locked with Baghdad over the oil and gas law for years. Recently, the Kurdish region halted its crude oil exports of about 100,000 bpd accusing Baghdad of delaying payments due to contracting companies.
Tensions escalated between Baghdad and the Erbil in October when US energy giant Exxon Mobil Corp. announced a deal with the Kurdish region to explore its oil fields. The announcement upset Baghdad and set off immediate reaction. Exxon Mobil risks its agreements with Baghdad by signing the contract with Kurdistan, said Iraqi officials in Baghdad.
Baghdad wants to retain the sole power of signing oil contracts in the country, while Kurds want to be able to manage their own oil resources with the revenues shared with Baghdad.
© AK News 2012
