Glencore, a Swiss mining and trading company has given Kurdistan Regional Government a $300 million dollar advance in order to compete with Glencore longtime rivals, Petraco and Vitol. The KRG will therefore make an allotment of oil for Glencore in its oil reserves in the future months.
The investment from Glencore is seeking to create a stronghold on the oil and gas market in Kurdistan as there has been a fall in coal and metal prices, meaning Glencore has had a losses and will try to make up the difference.
Kurdistan Regional Government began exporting oil independently during mid 2015 after Baghdad stopped sharing oil revenue in 2014. Yet, the KRG has been unable to export oil due to conflict within Kurdistan and Turkey. However, KRG has recently (March 11) begun pumping oil through the Turkish port of Ceyhan.