Six years after the invasion of Iraq by coalition forces, two European companies have agreed an $8 billion investment deal to develop  gas fields in Iraqi Kurdistan.

The deal between OMV of Austria and Hungary’s MOL has is planned to supply the 3,300km Nabucco pipeline from the region to Europe. The only stumbling block stopping the project from starting is bickering between the Iraq government in Baghdad and the authorities in Kurdistan:

“Europe took a surprise step towards reducing its dependence on Russian gas yesterday as two of its oil companies agreed to develop a gas field in Kurdistan, Iraq’s semi-autonomous region.

OMV, of Austria, and Hungary’s MOL agreed the deal, which will feed the planned Nabucco pipeline.

The 3,300km pipeline is the centrepiece of Europe’s energy policy and attempts to reduce imports from Russia by providing the region with gas from central Asia.

However, it is struggling to find suppliers. OMV and MOL, with their regional partners, are to invest $8bn (€5.9bn, £5.3bn) in Kurdistan’s gas fields and believe they could eventually pump as much as 3bn cubic feet of gas – almost twice as much as the combined consumption of Belgium and Luxembourg. About half that gas could eventually flow to Europe via Nabucco.

However, Kurdistan’s ability to export gas is entangled in a dispute with Baghdad. The two sides are deeply divided about how to share the country’s vast oil and gas wealth among its regions.” {Source: Financial Times}

I wonder how much of the profit from the 3 billion cubic feet of natuarl gas sold will go to the people of Kurdistan/Iraq ? Can me cynical but I do not think they will be getting the lion’s share of the revenue.

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