Such concerns are not limited to the energy sector. An executive at Hikma Pharmaceuticals recently citied unspecified political concerns as a factor complicating the Jordanian drug manufacturer’s idea of using Kurdistan’s secure and developed infrastructure as a base from which to expand its operations in Iraq.
Even so, several groups in Iraq have expressed interest in partnering with Hunt to develop resources in Kurdistan and elsewhere in Iraq, an investment strategy actively supported by the Kurdistan Regional Government (KRG). But while Hunt may have succeeded in signing a deal with the KRG in 2007 to develop oil and gas assets there, the agreement did not come with the approval of the Iraqi Federal Government.
The interpretation made by the Federal Government is at odds with KRG policy, as demonstrated by statements recently made by Falah Mustafa Bakir, Head of the KRG’s Department of Foreign Relations. In an interview with Mergermarket Mr. Bakir sought to ensure investors that there were no ambiguities about the guarantee of oil and gas contracts agreed between Kurdistan and the foreign and domestic companies operating there.
Mr. Bakir also said that the KRG would defend the rights and contracts of independent oil companies operating in the Region. He said that the KRG was optimistic regarding talks with the Iraqi Federal Government and in the newly formed parliament on the institution of a national hydrocarbon law.
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