World Bulletin / News Desk
The Chinese begun to sink their teeth into the Kurdish Region’s vast oil potential in 2009 when Sinopec acquired Addax Petroleum, which holds a joint agreement with Genel Energy to develop the Taq Taq oil field, reported the Rudaw.
To date, a total of 16 development and appraisal wells have been drilled in the Kurdistan Region of Iraq, according to a report from The Oil & Gas Year Review for Kurdistan in 2013.
“Sinopec is China’s largest oil company and has immense capacity to support the development of the downstream sector, both in Kurdistan and the rest of Iraq,” Yi Zhang, the chief executive officer of Addax Petroleum, said in the report.
Recently, a Chinese delegation visited Rasheed Tahir, the Kurdistan Regional Government’s (KRG) minister of finance and economy, to discuss the investment potential for numerous sectors, including oil.
Michael Howard, the adviser for the minister of natural resources, said currently he is unaware of any further Chinese involvement in Kurdish oil outside Sinopec.
“The region has a lot of economic potential and we have a lot of investors from a lot of different countries. Having said that, they may well be talking to individual oil companies we wouldn’t necessarily be aware of,” he said.
“We hope there will be opportunities for Addax Petroleum and our shareholders, Sinopec, to consolidate with other operators in the Kurdistan Region of Iraq, to farm into blocks or to obtain equity positions through mergers and acquisitions activities,” Zhang said in the report.