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Bloomberg
Plans to export natural gas from Iraqi Kurdistan got a boost after reserves were upgraded at two key fields. Yet successful development still hinges on the region’s turbulent politics.
The Miran and Bina Bawi deposits hold 14.8 trillion cubic feet of contingent gas resources, explorer Genel Energy Plc said in a statement after an audit was carried out by RPS Energy Consultants Ltd. That’s an increase of more than 40 percent from the previous estimate in 2016.
The upgrade is a boon for Genel, whose fields could turn the semi-autonomous province into a gas exporter. But risks remain. The project stalled last year after an independence referendum stoked tensions between the Kurdistan Regional Government and federal authorities.
“The referendum has really been the key to what is or isn’t going to happen with Miran and Bina Bawi,†Daniel Slater, an analyst at Arden Partners Plc, said before resource update. While the fields could be a “significant source of upside†for Genel, there’s little hope of “any material progress on funding or anything else on it until the tensions between the KRG and Baghdad die down.â€
Shares in Genel rose as much as 9 percent in London trading, reaching the highest level in more than three months. They were trading 7.2 percent higher at 136.2 pence as of 2:10 p.m. local time.