Abu Dhabi National Energy Company (TAQA) will explore for oil and gas in a disputed area in Iraq under a contract awarded recently by the Oil Ministry, a Kurdish official was reported on Monday as saying.

The concession area awarded to the TAQA within the latest round of oil licenses is located in the Northeastern Diyala Governorate, said Bahjat Ahmed, an energy adviser at the Kurdistan Patriotic Union Party office.

“As per this contract, TAQA will invest in an oilfield which is located in areas that are in dispute between Baghdad and Erbil,” Ahmed told Baghdad Al-Youm news network.

Ahmed said Iraq’s Oil Ministry awarded the concession to TAQA without consulting with the autonomous Kurdistan government as per the existing oil and gas law, which he said allows Baghdad to “centrally” manage the sector.

“The Iraqi constitution binds the federal government to consult with Kurdistan regarding investments in the oil and gas sector in disputed areas…but Baghdad did not abide by this article in the constitution,” Ahmed said.

He warned that problems with Baghdad in this respect would continue unless the new oil and gas law, which is currently debated by the government, is ratified and enforced.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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