The role of an IOC is to locate resources in difficult areas

The role of NOCs and IOCs were discussed by Mr Tony Hayward, Chief Executive Officer of Genel Energy,  Khaled Al-Sumaiti, Deputy Managing Director (Exploration & Production Development) of Kuwait Oil Company,  Mr Christoph Schlichter, Senior Vice President Production North Africa, of RWE Dea AG, Ben Knowles of Clyde & Co, Mr Johannes Benigni, Managing Director of JBC Energy and Jan Konstanty of Wintershall Holdings at the 2012 World National Oil Companies Congress.

The general consensus was that the role of an IOC was to locate resources in difficult areas, i.e. deepwaters of Brazil, West Africa, North sea and Alaska.  This has been the industry standard since the rise of OPEC (Organization of the Petroleum Exporting Countries) due to them having the capabilities, knowledge and access to funds.

When asked about the political situation in Iraq, Tony Hayward stated that there were many significant challenges that need to be overcome, particularly around infrastructure and security. However in the North of Iraq in Kurdistan, a lot of progress has been made. Genel Energy (headquartered in New Jersey) is confident that they will be able to increase their production capacity of 30,000 barrels to 500,000 barrels in the next 18 months.

Genel Energy has an interest in six Production Sharing Contracts within the Kurdistan Regional Government and is interests in the Taq Taq and Tawke fields.

When asked about why invest in unstable regions. Tony Hayward replied “the oil and gas industry is about asset quality, there was an opportunity in the Kurdistan region not which isn’t available to a startup EMP company, which is quite unusual.” Material assets are where value is created and where you can be successful.

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