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Iraq's Kurdistan region approves four new oil deals
3.10.2007
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October
3, 2007
Erbil-Hewler, Kurdistan region 'Iraq',
Iraq's Kurdistan regional government (KRG) has
approved four
new oil and gas deals that will attract around $500
million of investment in exploration, the KRG said
in a statement on its Web site.
The semi-autonomous KRG has struck five production
sharing agreements (PSAs) this year, despite
objections from Baghdad. Iraq's oil minister said
last month that oil deals that the KRG had signed
since February were illegal.
The KRG rejects Baghdad's claims that the deals
breach the country's laws. The region's government
is in talks with a number of international and local
companies for further upstream and downstream
projects, it said in the statement. |
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The KRG said it signed a PSA with a subsidiary of
Toronto-listed Heritage Oil and Gas (HOC.TO: Quote,
Profile, Research) for its Miran block. It signed
another with a subsidiary of French oil exploration
and production company Perenco for the Sindi/Amedi
block.
Heritage signed
a memorandum of understanding with the KRG for
exploration in 2005 that analysts had expected to
result in a PSA.
The KRG's oil and gas council has approved two more
deals with international companies that would be
signed shortly, it said in the statement. The KRG
did not give the names of the two companies.
Holders of the PSAs would take 15 percent of the
profits, while 85 percent would go to Iraq, the KRG
said. A deal signed with Hunt Oil in August was
agreed on the same terms, the KRG said.
Iraq's cabinet agreed a draft law for dividing the
world's third-largest oil reserves in February, but
rows with the KRG as well as objections from some
Shi'ite and Sunni Arab politicians have slowed its
progress.
Frustrated by Baghdad's delays, KRG approved its own
oil law in August. It plans to boost production to 1
million barrels per day (bpd) in about five years
from just a few thousand now.
The KRG oil and gas council has also approved
projects to build two new 20,000 bpd refineries
worth a total of around $300 million.
Heritage will build one in the Miran area.
Toronto-listed Addax Petroleum (AXC.TO: Quote,
Profile, Research) and its Turkish partner Genel
Enerji will build another in the Taq Taq oilfield
area.
Addax holds a PSA with the KRG for the Taq Taq
oilfield. It plans to submit a $1 billion field
development plan for the field that could bring
output to 200,000 bpd by 2010.
Reuters
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