Why Kurdistan is proving an irresistible lure

By Nassir Shirkhani London

 23 August 2012 22:59 GMT

Iraqi Kurdistan’s upstream sector is proving an irresistible destination for the world’s major oil companies, which see the semi-autonomous region as the best hope of getting their hands on plentiful low-cost crude reserves.

Hardly a month goes by without a major company announcing its entry into the region, further ­empowering the Kurdistan ­Regional Government (KRG) in its dispute with the federal Iraqi ­authorities over managing its own oil industry.

The appetite for investment in Kurdistan contrasts with a lack of enthusiasm on the part of international oil companies to get fresh exposure to areas under ­federal rule.

But while KRG’s upstream deals are seen as lucrative, lack of transparency and hidden third party interests create potential minefields for major companies that could run foul of anti-corruption…

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