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DNO says Kurdistan-Iraq oil deal won't
change
23.1.2007 |
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January 23, 2007
Erbil, Kurdistan region (Iraq), January 22,
-- Norwegian oil firm DNO says its contract with the
Kurdistan Regional Government doesn't need to be
reviewed or renegotiated by the central Iraqi
government.
DNO was the first firm to begin work in Iraq's oil
sector after the U.S.-led invasion. It has began
developing oil in the semi-autonomous and relatively
safe northern Kurdistan region.
But a split between the KRG and the central
government over control of oil has been festering.
The Iraq Oil Ministry has said it won't honor any contracts over oil
signed by the regions, though the KRG says the
constitution puts new oil development in Iraq under
regional control.
Iraq has an estimated 115 billion barrels of proven
crude reserves -- the third-largest in the world.
It is producing only about 2 million barrels a day,
more than a half million barrels less than before
the war, because of mismanagement under Saddam
Hussein, U.N. sanctions, and the effects of the
invasion and near civil war.
Iraq doesn't have a law governing its oil, and
ongoing negotiations have been hampered by the
regional vs. central control squabble.
But the KRG is saying this is one issue it won't
bend on.
Helg Edi, executive chairman of DNO, said he's been
assured there won't be a renegotiation of the
company's Kurdistan activities which are about half
of the Norwegian firm's worth, Iraq Directory
reports.
The opinions which say that each contract will be
renegotiated are inconsistent with the information
we have heard, Edi said.
We should not jump to conclusions but must wait till
(the law) is completed and officially announced
UPI
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