Ensuring energy security is a strategic challenge for Europe, and the continent is committed to opening up a southern corridor to increase diversity, and hence, security of supply. The planned ‘Nabucco’ pipeline, which could take Kurdish gas into the heart of Europe, is an obvious option.
All of this is obvious from a market and industry perspective. Let’s hope, though, that politics don’t get in the way.
Much of this good news depends on Iraqi politicians finally passing the legislation necessary to put the hydrocarbons industry on a sounder legal footing. The draft legislation on hydrocarbons and revenue-sharing has been in limbo for far too long. It is time to get it sorted, as we say in Britain. Our understanding is that the gap between the various parties is relatively narrow. For a country dependent on hydrocarbon exports to the extent Iraq is, it makes no sense to play politics with such important legislation. Of course, it has to be right and well-drafted.
It is hard to see what can be holding up the legislation, and whose interests delay serves. Certainly not the Iraqi people. Needless to say exporting gas from Kurdistan would lead to potentially huge revenues, billions of dollars, to Iraq.
On the upside, passing the legislation would be a welcome sign that, whatever the state of the government, the Iraqi body politic is capable of passing much needed laws that are good for the investment climate in Iraq; a sign of progress and unity.
We in the UK will certainly be pushing for that in the weeks and months that come.
(Source: Rudaw)
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