Fiscal, technical, and political challenges crimp KRG oil output

Output from oil fields managed by the semi-autonomous Kurdistan Regional Government (KRG) fell for a third year in a row in 2022, as unpredictable payments have discouraged foreign companies from investing strongly in new production.

KRG oil fields averaged a combined 438,000 barrels per day (bpd) in 2022, according to an Iraq Oil Report analysis based on independent data gathered monthly from operating companies and industry officials. Production has declined steadily year-on-year since hitting 484,000 bpd in 2019.

International oil companies (IOCs) operating in Kurdistan are warning that the downtrend could continue if the government doesn't improve its payment policies.