The Ministry of Natural Resources of the Kurdistan Regional Government is a government body responsible for the exploration, extraction, utilisation and protection of natural resources in the autonomous Kurdistan Region of Iraq.
NPMS in Use
2016-present
Commercial Model
Revenue Sharing
The Challenge
The oil & gas industry sits at the heart of the Kurdistan Region’s economy and has been instrumental in the wealth creation and economic prosperity experienced during the past two decades. With the continued growth of the oil & gas industry and related stakeholder activity in the region, the Ministry of Natural Resources (MNR) identified the need for a technology platform capable of supporting the proper supervision and regulation of the industry.
“NPMS has allowed the KRG to take a massive leap in petroleum industry management, achieving comprehensive reporting and regulatory capability, which both serves the Government's needs and presents a modern, business friendly interface to the industry, developing credibility and respect for the MNR.”
Ian McIntosh,former Vice-President of Western Zagros Resources (2010-13) and Technical Advisor to the Minister of Natural Resources,
Key challenges prior to the deployment of NPMS:
- MNR staff were lacking in both capability and number to effectively manage the vastness and complexities of their duties
- MNR was unable to effectively compile and consolidate data to produce accurate and informative analyses to support decision makers
- Data and documents were neither being stored or backed-up properly, making retrieval difficult and increasing the risk of permanent data loss
- MNR was unable to keep accurate, complete and up-date contact records for stakeholders to allow communication of key industry updates such as the release of new regulations
- MNR was struggling to monitor stakeholder activities and compliance to their contracts and local regulations
Key challenges prior to the deployment of NPMS:
These challenges prevented the MNR from operating effectively and fulfilling its industry responsibilities. The MNR understood that mismanagement of its duties could hinder the development of petroleum resources, to the detriment of the Kurdistan Region’s economy. An urgent solution was therefore needed to ensure that the MNR maintained control and oversight of the industry amidst its rapid growth.
The Solution
The implementation of NPMS has been hugely successful in the Kurdistan Region and has delivered on the MNR’s vision to establish a world-class oil & gas management system.
The MNR has experienced a truly remarkable digital transformation and is seen to have set a new benchmark in innovation and transparency by both internal stakeholders and external observers.
The MNR is now better organised than ever, maximising the effectiveness of NPMS functionality by implementing streamlined processes and robust regulations,
thus providing the industry with better support and stewardship.
The benefits of NPMS have extended to all industry stakeholders in the Kurdistan Region, with NPMS facilitating their business activities and creating new opportunities.
Key improvements to MNR capability delivered by NPMS:
- Improved oversight of stakeholder activities
- Better data management
- More data-driven decision making
- Streamlined internal activities and processes
- Increased staff productivity
- Improved contractual and regulatory compliance monitoring
- Enhanced industry communication
Through NPMS, the MNR has established a clear and consistent interface with industry stakeholders, and the industry as a whole is realising the benefits of increased collaborative working and a sense of community.
This positivity amongst industry stakeholders has been further reinforced by the improved transparency delivered by NPMS. With levels of trust between the Government and industry stakeholders reaching new highs, the region can now be considered more business friendly than ever before, encouraging new entrants and further investment.
NPMS has also been leveraged to create new revenue streams for the Government. These revenues have been used to fund local workforce, enterprise and community development initiatives.
NPMS continues to grow in the Kurdistan Region with plans by the MNR to encompass further aspects of the industry’s activities.
