Thursday, November 23, 2006
Norwegian Schtat Oil considers Kurdistan
Kurdistan, Oil
A prominent official of the Norwegian Oil Company Schtat Oil said that the company is holding talks, on the development of oil fields, with government officials in Iraq and the northern region, which is dominated by Kurds, but it is waiting for the achieve of more stability before starting work there. Peter Milbai, Head of excavation and production works in the Company, said: "we have held discussions with various levels of government officials in Iraq," including officials of the Kurdish regional government. He added, "The Kurdish area is of great potential, but the company is concerned about the security situation in Iraq and is anticipating evolution of the political process there".
The escalation of sectarian violence in Iraq made it difficult for international companies to protect their workers; however, the disturbance in the northern region is less than in other parts of Iraq. Schtat Oil has no works in Iraq; however, many big international companies are seeking investment in the Iraqi oil sector, but are waiting for politicians to put a new investment law, determining their work there. The small Norwegian company, DNO, was the first to start exploration in Iraq after the invasion, led by the United States on the country in March 2003. DNO intends to start production early next year under a profit participation agreement with the Kurdish regional government. The Iraqi central government questioned in the validity of the agreement in the context of competing with regional governments on oil revenues and the authority to sign deals.
