Oil Exploration Conflict With Iraq Corners SK Energy

SK Energy is still mulling over a tough call between discontinuing oil exploration in the Kurdish region and losing Iraqi oil imports. The nation’s top oil refiner has been cornered to make this decision after a conflict that surfaced last week when an angered Iraqi government threatened to cut off crude exports should the Korea-Kurds oil deal continue.

The Kurdistan regional government in early November gave a Korea National Oil Corporation led consortium, including SK Energy and GS Holdings, rights to explore the Bazian oil field in northern Iraq.


However, Baghdad has been warning foreign oil companies not to deal with Kurds without the Iraqi government’s approval until a new national oil law is passed to regulate and share the country’s lucrative oil industry among the Shiite, Sunni and Kurdish communities.

As such cautions weren’t acknowledged, Iraq’s oil ministry reportedly informed SK Energy via telephone recently that it may suspend oil exports to Seoul if the company continues the project, of which it has a 19 percent stake in.

Since the notice, the Ministry of Foreign Affairs and Trade and Ministry of Commerce, Industry and Energy have been in contact with the Iraqi government to sort out the problem.

However, government sources, according to Yonhap news, Sunday, confirmed that Baghdad firmly maintains its initial position, as it awaits for SK Energy’s decision.

Korea Times