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Iraqi Kurdistan oil output capacity at 300,000 barrels a day:
Minister |
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Iraqi Kurdistan oil output capacity at
300,000 barrels a day: Minister
20.6.2012 |
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Ashti Hawrami, Iraqi Kurdistan minister of natural
resources of the Kurdistan Regional Government KRG.
Photo: Getty Images
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June 20, 2012
ERBIL-Hewlêr, Kurdistan region 'Iraq', —
Iraq's crude oil production capacity from the
Kurdistan region in northern Iraq is 300,000 barrels
a day, Ashti Hawrami, the region's oil minister said
Tuesday.
However, Kurdistan isn't producing that amount of
oil because it has suspended exports via Baghdad's
pipeline running to Turkey due to financial issues
with the central government in the capital.
"Output capacity from Kurdistan is expected to
increase to 400,000 barrels a day by the end of next
year," Mr. Hawrami told an Iraqi energy conference
being held by the CWC Group in London.
The minister is expecting production from the
Kurdish region to reach 1 million barrels a day by
the end of 2015 and 2 million barrels a day in 2019.
Proven oil reserves in Kurdistan have gone up from 1
billion barrels five years ago to around 44 billion
barrels now, he added.
He said some 40 to 50 international oil companies
are currently working in Kurdistan under
production-sharing contracts concluded with them
during the last five years.
The Kurdistan Regional Government--known as
KRG--suspended crude oil exports of nearly 100,000
barrels a day in April this year, protesting that
Baghdad was delaying payment of around $1.5 billion
that the region needs to pay to contracting
companies.
Kurdistan says only two payments totaling $514
million have been received, with the last payment
made in May 2011. Baghdad said earlier this year
that it is releasing the payment of $560 million but
was awaiting an audit to pay it.
Mr. Hawrami said that the entire audit has been made
and sent to Baghdad but payment hasn't been issued
yet.
Tensions between Baghdad and the Kurdish region have
risen since October when U.S. energy giant Exxon
Mobil Corp. (XOM) announced a deal with the KRG to
explore for oil in Kurdistan. Baghdad warned the
U.S. oil giant could risk its agreements with the
central government.
Mr. Hawrami expected three more oil majors to join
the development of the oil and gas sector in
Kurdistan. He didn't name them.
The Iraqi central government last year reached an
agreement with the Kurdish authorities to resume oil
exports from the semi-autonomous region as from
February after a suspension of more than year,www.ekurd.net
and agreed to pay exploration costs and expenses to
foreign firms in the KRG.
The Kurds and the central government, which grants
all oil-export licenses, have been at odds over oil
contracts the Kurds signed with foreign companies.
Baghdad doesn't recognize the contracts.
Also unresolved is the enactment of an Iraqi oil and
gas law and revenue-sharing law as one package,
which Mr. Hawrami said it is needed to ensure
long-term investment in the region. Under the
current arrangement, Baghdad has agreed to
compensate contracting companies in Kurdistan for
the costs of their exports, but not for profits. The
Kurds hope to have a law enacted as soon as
possible, but past efforts have died in Iraq's
parliament.
Copyright ©, respective
author or news agency,
Dow Jones Newswires | dowjones.com
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