Times are tough in the Kurdistan Region of Iraq. The low oil price has added to the Kurdistan Regional Government's financial woes. As a result, Kurdistan-focused companies have suffered from a lack of payments from the KRG, and recent reserve downgrades along with low oil prices have increased the strain. Yet, we expect the Kurdistan-focused IOCs, with the possible exception of Gulf Keystone, to survive in the short-term. However, more will struggle if the climate doesn’t improve over the coming two to three years.