KRG Ministry of Natural Resources

3 October 2016

Ministry of Natural Resources Statement

It has come to the attention of the Ministry of Natural Resources (MNR) that a London-based company (Company) is promoting itself to potential investors as a new upstream investment vehicle focussed on the Kurdistan Region.

The Company is circulating presentational material and information to prospective investors in which it states that its management team includes current executives of international oil companies (IOCs) active in the Kurdistan Region, and also a serving senior official in the Kurdistan Regional Government (KRG), who is now under investigation by MNR.

MNR is of the opinion that their involvement may have given rise to a serious conflict of interest with regard to the security of KRG confidential data for oil and gas blocks to which the KRG official and the IOC executives have had access as part of their duties.

MNR has written to the IOCs involved requesting they conduct an investigation into the alleged involvement of their executives and notify us as soon as possible about whether a conflict of interest has occurred and whether the KRG’s confidential data may have been used or disclosed to potential investors without the KRG’s consent.

The KRG normally welcomes new investors to its oil and gas sector. However, the laws of the Kurdistan Region are clear about the unauthorized use of confidential data and the involvement of government officials in private business. MNR will not enter into any discussions with companies or potential investors that do not respect the KRG’s laws and regulations.