IOCs in Iraqi Kurdistan are targeting modest production gains in 2017. But the KRG’s ability to pay remains problematic, while geological woes continue.

Iraqi Kurdistan’s oil sector suffered a turbulent 2016 marred by attacks on export infrastructure, geological downgrades and failure to pay IOCs in a timely and reliable fashion.

Despite paying off around $350mn of prepayments to its crude offtakers in January-November 2016, it still has almost $2bn outstanding which will...