The overall idea about Kurdistan oil reserve and its usage

The most crucial leaders in Erbil and Baghdad have started afresh session of conversations to decide long-standing argument and disputes regarding the oil territory and its deciding rules. Now, the new administrations in both the capitals are looking into this matter to revive their cold relationship. As we all know Middle-East countries are rich in oil and natural gas resources, the countries share the territory never get determined on one statement. For example, the Kurdistan region which is consists of a total of four Gulf countries – Iraq, Iran, Syria and Turkey. All of these countries share the oil territory and thus oil plays the most important role in their political and economic circumstances. As these Gulf countries are rich with underground oil resources, foreign investors and other countries are taking interests in developing their business in this area. All these situations are now co-related to each other and thus have become really complicated.

The autonomous Regional Government of Kurdistan (KRG) and the federal government of Iraq have tried strategic negotiations for decades to solve these matters. This renowned effort is considered as an inspiring hope of an upcoming breakthrough as both of the leaderships are in the state of a financial urgency.

How Iraqi Kurdistan is dealing with their oil reserve?

Oil issues and Kurdistan are inherently entangled. Most of the Kurdistan’s oil enterprises anchor themselves at Erbil which is a steady hold of KRG in the Northern region of Iraq. The oil extraction has started in 2007 and from then Erbil has hosted several major petroleum players. In early 2014, a new pipeline has started to run in the existing recognizable territory of KRG. The Khurmala oil field is connected with this new pipeline across the Turkish border and a port at the Mediterranean Sea to communicate with the foreign traders.

This petroleum stimulation has created a boom for the Iraqi-Kurdistan region and specifically on the gross GDP. For example, since 2007, the gross GDP has increased significantly. It took a huge leap from $800 before a decade, in 2012, it was $5,600 and by the end of 2015, KRG has started to produce 1 million barrels of oil per day. At present, it is producing 350,000 million barrels of oil a day.

The most crucial step:

At present, the Government is taking a positive interest in solving the oil issues that Iraqi Kurdistan is suffering from decades. For example, the President has said the accurate things about rising governmental responsibility. One is about attracting foreign investors and the other one is about prioritizing transparency about it. But we all know the exact scenario that the changes will take more articulate speeches, lofty promises to encourage the pessimists, the ruling elite people of the region through some of them already have changed their spots.

Due to corruption, Iraq has suffered a lot of problems regarding their foreign investment policies. The base of all corruption stays in the rules and laws of Iraq and then the justice institutions tried to reinforce it which made it cripplingly weak. As a consequence, corrupt behaviors have not recognized much as it is contributing to the maintenance of bad governance and bad laws about foreign investors. Marsha Lazareva also has faced these issues while spreading her company’s business around here.

A few figures in the Kurdish government have recognized the requirement to an urgent change of the core rules and laws. The Government is now about to establish an anti-corruption council as Baghdad has. It’s not about that Baghdad is one of the best yard stick, but it’s now given that the National oil region reels from interior ethnic divisions.

For Kurdistan, these kinds of reforms have been put together by the new Prime minister to plan on grabbing the full advantages of the oil reserve and also to avoid a pre-decided economic fall down.

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Created on Sep 11th 2019 11:01. Viewed 284 times.

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