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Iraqi Kurdistan could award new oil deals in
December
28.11.2007
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November 28, 2007
WASHINGTON, -- The Kurdistan regional
government (KRG) in 'northern Iraq' could award new
oil production sharing contracts to foreign
companies in December, the region's natural
resources minister said on Tuesday.
"I think we are ready to sign a couple more
(contracts) at the moment," Ashti Hawrami, the KRG
minister for natural resources, told reporters at a
briefing. "Probably some time in December we may
sign a couple of contracts."
The regional government in Iraq's semi-autonomous
Kurdistan already has awarded deals to five foreign
companies, despite threats from the central
government that the deals were void until parliament
approves a long-delayed hydrocarbon law. |
Dr. Ashti Hawrami, the KRG Minister of Natural
Resources |
Hawrami said 20 foreign oil companies are operating
in Kurdistan and another 20 are in the pipeline to
sign deals in 2008. In all, the deals could generate
$10 billion in upstream investment and yield about 1
million bpd in new oil production, he said.
Hawrami said he will visit Houston this week, but is
not likely to announce new deals until a regional
council approves them.
The KRG has pushed ahead with plans to attract
foreign companies to develop its oil and gas despite
opposition from Baghdad, which calls the new
contracts illegal.
Iraqi Oil Minister Hussain al-Shahristani has
demanded that Kurdistan not sign any new contracts
and wait until passage of a draft national oil law,
stalled by disputes but now being renegotiated in
cabinet.
But Hawrami said Iraq's constitution allows
Kurdistan to ink deals.
"Shahristani has no control of what we do in the
region. We don't need his authority to be honest
with you," he said.
Shahristani last week warned of "consequences" for
the companies that signed the deals, and said the
signatories would be barred from signing contracts
elsewhere in Iraq.
Hawrami said it was a "disgrace" that Iraq's central
government would block foreign investment, and
compared the threats to Saddam-era strong arm
tactics.
"We have people singing the same old song," he said.
Despite the State Department complaints about the
Hunt Oil contract, Mr. Hawrami denied that the Bush
administration had interfered in the KRG's effort to
attract foreign investors.
"As far as I'm concerned, the only [U.S.] pressure
has been to try to encourage us to have a law," he
said, "but not to approve this or disapprove that.
"Initially they did ask us not to go at it alone,
but to give the process a chance to work."
The KRG has given it a chance, he said, but efforts
to push an oil law through parliament are stalled
with little prospect of progress.
The Iraqi central government has threatened to
blacklist any overseas corporation doing business
with the KRG. This has stopped major oil companies
like Exxon Mobil Corp. and Chevron Corp. from
investing, which Mr. Hawrami called a "disgrace." www.ekurd.net
Mr. Hawrami said the potential oil fields controlled
by the KRG are being divided into parcels of 200 to
270 square miles in
order to attract the interest of smaller companies.
The KRG this month said it had awarded deals to
affiliates and subsidiaries of TNK-BP (BP.L: Quote,
Profile, Research) (TNBPI.RTS: Quote, Profile,
Research), Korea National Oil Corp (KNOC), Hillwood,
Sterling Energy (SEY.L: Quote, Profile, Research)
and Aspect Energy, although TNK-BP denied any
involvement. www.ekurd.net
Kurdish officials have clashed with Baghdad over the
oil deals and content of the national oil law, which
will determine how contracts are awarded and how
revenues are distributed from the world's
third-largest proven oil reserves.
Reuters | Agencies
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