Friday, September 07, 2007
DNO says two Tawke wells confirm deposits
Oil
(IDP) - Norwegian independent oil producer DNO said two new wells at its Tawke field in northern Iraq have both confirmed oil deposits. "DNO is pleased to announce that Tawke No. 8 has confirmed oil in the central/down flank position of the field," DNO said in a statement on Wednesday. "Good reservoir properties have been confirmed, and so far the well has achieved a gross rate of more than 17,000 barrels of oil per day aggregated from four tests. A maximum of 8,000 bod was achieved from the most productive test interval." Tawke No. 5A has been drilled to its final depth, DNO said, and confirmed oil in the central area of the lower reservoir.
Labels: DNO, oil, Tawke field
Tuesday, September 04, 2007
Addax Petroleum and Genel Enerji to submit $1 bn. development plan for Taq Taq to KRG
Oil, Kurdistan
(Reuters) - Addax Petroleum and Genel Enerji expect to submit a $1 billion development plan within weeks to Iraq's Kurdish region for their joint venture TTopco's Taq Taq oilfield, a TTopco executive said Sunday. Output from the field could hit 200,000 barrels per day (bpd) by 2010, Les Blair, General Manager of TTopco, told Reuters.
"The production plateau is up to 200,000 bpd," Blair said. "In the coming weeks we'll submit the field development plan. Investment would be approximately $1 billion." The plan will go to Iraq's semi-autonomous Kurdish Regional Government (KRG) for approval. The blueprint requires access to an export route for the oil as output would exceed local demand, Blair said.
In May 2006, Swiss-based Addax and Turkey's Genel Enerji signed a 25-year production sharing agreement (PSA) with the KRG for Taq Taq. The oilfield is 60 kms north of the giant Kirkuk oilfield in Iraq, which has been plagued by a brutal insurgency since a U.S.-led invasion in March 2003. But the Kurdish region has been relatively stable and the government -- hungry for development -- has encouraged operators such as TTopco to begin work.
The KRG plans to boost output to one million bpd in about five years from just a few thousand bpd now. It has inked five PSAs and has said it has more deals ready to sign. The region had put new deals on hold while it waited for Baghdad to pass a controversial new federal oil law which stipulates who controls the world's third largest oil reserves and how revenue is distributed.
Washington has pushed Iraq for months to speed up its passage and that of other legislation, which it sees as pivotal to reconciling warring Iraqis, rebuilding Iraq's shattered economy and attracting foreign investment.
After months of waiting for Baghdad, the KRG passed its own oil law in August.
The KRG says the PSAs that it has already signed were in line with the constitution and the new oil law. The KRG and Baghdad have clashed over the contracts, and the KRG has said it will review them to ensure their harmony with new laws. The passing of the oil law was also expected to herald an agreement on export routes for crude from the Kurdish region.
The central government has yet to give the nod to Norwegian operator DNO to hook its oil output from the Tawke field in the Kurdish region into Iraq's main export pipeline to Turkey. DNO has already built a link from the Tawke field to the export pipeline. Output from Tawke is limited while DNO awaits permission to export, and the company has been delivering crude to local markets in trucks.
"The production plateau is up to 200,000 bpd," Blair said. "In the coming weeks we'll submit the field development plan. Investment would be approximately $1 billion." The plan will go to Iraq's semi-autonomous Kurdish Regional Government (KRG) for approval. The blueprint requires access to an export route for the oil as output would exceed local demand, Blair said.
In May 2006, Swiss-based Addax and Turkey's Genel Enerji signed a 25-year production sharing agreement (PSA) with the KRG for Taq Taq. The oilfield is 60 kms north of the giant Kirkuk oilfield in Iraq, which has been plagued by a brutal insurgency since a U.S.-led invasion in March 2003. But the Kurdish region has been relatively stable and the government -- hungry for development -- has encouraged operators such as TTopco to begin work.
The KRG plans to boost output to one million bpd in about five years from just a few thousand bpd now. It has inked five PSAs and has said it has more deals ready to sign. The region had put new deals on hold while it waited for Baghdad to pass a controversial new federal oil law which stipulates who controls the world's third largest oil reserves and how revenue is distributed.
Washington has pushed Iraq for months to speed up its passage and that of other legislation, which it sees as pivotal to reconciling warring Iraqis, rebuilding Iraq's shattered economy and attracting foreign investment.
After months of waiting for Baghdad, the KRG passed its own oil law in August.
The KRG says the PSAs that it has already signed were in line with the constitution and the new oil law. The KRG and Baghdad have clashed over the contracts, and the KRG has said it will review them to ensure their harmony with new laws. The passing of the oil law was also expected to herald an agreement on export routes for crude from the Kurdish region.
The central government has yet to give the nod to Norwegian operator DNO to hook its oil output from the Tawke field in the Kurdish region into Iraq's main export pipeline to Turkey. DNO has already built a link from the Tawke field to the export pipeline. Output from Tawke is limited while DNO awaits permission to export, and the company has been delivering crude to local markets in trucks.
Labels: Addax Petroleum, DNO, Genel Enerji, KRG, Les Blair, Taq Taq oilfield, TTopco
Friday, August 24, 2007
DNO rejects unsolicited $700 mn. bid
Oil
(AFX News Limited) - DNO ASA said it has rejected an unsolicited 700 mln US$ bid by 'a large international oil company' for its licenses in Kurdistan region (northern Iraq). The Norwegian oil minnow said it has 'reviewed the interest and decided not to pursue the matter further'. The suggested price, it said, was based on information available in the market as of early July 2007. 'No further comments can be given due to confidentiality requirements,' DNO added.
DNO ASA said it is expecting the first export of oil from its Tawke field in Kurdistan region (northern Iraq) in November this year, assuming it secures the relevant permission from authorities in the region. Speaking after the release of its second quarter results, DNO said it is aiming to begin the export of oil into Turkey via pipeline from November.
The Kurdistan Petroleum Law was ratified by the region's parliament in August, and DNO said it expects the federal law to be approved in September. According to this schedule, he said, exports could begin the following month. Due to the political situation in Iraq, DNO is currently being forced to sell its oil in the local market.
DNO ASA said it is expecting the first export of oil from its Tawke field in Kurdistan region (northern Iraq) in November this year, assuming it secures the relevant permission from authorities in the region. Speaking after the release of its second quarter results, DNO said it is aiming to begin the export of oil into Turkey via pipeline from November.
The Kurdistan Petroleum Law was ratified by the region's parliament in August, and DNO said it expects the federal law to be approved in September. According to this schedule, he said, exports could begin the following month. Due to the political situation in Iraq, DNO is currently being forced to sell its oil in the local market.
Labels: DNO, Kurdistan, oil, Tawke field, Turkey
Friday, May 25, 2007
Kurdish delegation heads to Baghdad for meeting on draft oil law
Politics
(Kurdish Globe) - KRG Prime Minister Nechirvan Barzani, accompanied by the ministers of finance and natural resources, headed the delegation to Baghdad, intent on settling arguments regarding the Iraq draft oil law. Iraqi and Kurdish lawmakers have not been able to settle disputes on how to distribute the country's oil wealth or the KRG's right to sign contracts with international oil and gas firms.
Barzani who met with Iraq's Prime Minister Nuri Al-Maliki Monday and described the environment as "friendly", expressed Erbil's support for the Maliki administration. He also announced the formation of a common committee to settle the disputes. General Jabar Yawar, spokesman of the Kurdistan forces who accompanies PM Barzani, said the meeting was "positive" but refrained from disclosing any details. Other constitutional issues up for discussion include possible amendments to the Iraqi constitution as well as the implementation of Article 140 in Kirkuk and other disputed areas.
The discussion comes at a time when the Norwegian company DNO announced its first-quarter activities of 2007. DNO began exploring for oil in Tawke, near Zakho town, nearly two years ago under an agreement with the KRG. The company stated on May 16 that Tawke oil is currently ready to be transported to market and that two new drilling projects completed at Tawke now bring the total to five.
"We are pleased with our achievements of developing Tawke into a field ready to produce," said Helge Eide, DNO managing director. "This is also testament to the commitment of the KRG and DNO to develop long-term and sustainable values from their joint projects."
Barzani who met with Iraq's Prime Minister Nuri Al-Maliki Monday and described the environment as "friendly", expressed Erbil's support for the Maliki administration. He also announced the formation of a common committee to settle the disputes. General Jabar Yawar, spokesman of the Kurdistan forces who accompanies PM Barzani, said the meeting was "positive" but refrained from disclosing any details. Other constitutional issues up for discussion include possible amendments to the Iraqi constitution as well as the implementation of Article 140 in Kirkuk and other disputed areas.
The discussion comes at a time when the Norwegian company DNO announced its first-quarter activities of 2007. DNO began exploring for oil in Tawke, near Zakho town, nearly two years ago under an agreement with the KRG. The company stated on May 16 that Tawke oil is currently ready to be transported to market and that two new drilling projects completed at Tawke now bring the total to five.
"We are pleased with our achievements of developing Tawke into a field ready to produce," said Helge Eide, DNO managing director. "This is also testament to the commitment of the KRG and DNO to develop long-term and sustainable values from their joint projects."
Labels: Article 140, Baghdad, DNO, draft oil law, Helge Eide, Iraqi constitution, KRG, Nechirvan Barzani, Tawke
Wednesday, May 16, 2007
DNO to start pumping Iraqi crude oil onto global market
Oil
(BI-ME) - Norwegian oil producer DNO will become the first foreign firm in more than three decades to start pumping Iraqi crude into the global market next month, the Financial Times reported on Wednesday. It will begin producing a small amount of oil from the Northern Iraqi region of Kurdistan, marking a symbolic return of foreign companies to Iraq after 35 years of state control.
The company’s experience is being closely watched by larger competitors, eager for a slice of the world’s third-largest oil reserves, but deterred by security fears and the lack of a legal framework for Iraqi oil. The sharing of oil resources has been a point of dispute between Iraq’s sectarian communities. The Kurdish authorities’ decision to sign separate contracts, could add strain to relations between Iraq’s Kurdish authorities and the central government in Baghdad. Ashti Hawrani, the Kurdish oil minister, said Kurdistan’s regional government would share revenue with the rest of the country.
In Asian trading, oil slipped early on Wednesday ahead of data expected to show rises in US crude and fuel inventories, but Brent prices held near US$68 after a rally on further supply disruptions in the world's eighth largest exporter Nigeria. London Brent crude, currently seen as more representative of the global oil market, was talked at US$67.83/US$67.95 a barrel for June, ahead of the contract's expiry on Wednesday. US crude futures dipped 12 cents to US$63.05 a barrel.
The company’s experience is being closely watched by larger competitors, eager for a slice of the world’s third-largest oil reserves, but deterred by security fears and the lack of a legal framework for Iraqi oil. The sharing of oil resources has been a point of dispute between Iraq’s sectarian communities. The Kurdish authorities’ decision to sign separate contracts, could add strain to relations between Iraq’s Kurdish authorities and the central government in Baghdad. Ashti Hawrani, the Kurdish oil minister, said Kurdistan’s regional government would share revenue with the rest of the country.
In Asian trading, oil slipped early on Wednesday ahead of data expected to show rises in US crude and fuel inventories, but Brent prices held near US$68 after a rally on further supply disruptions in the world's eighth largest exporter Nigeria. London Brent crude, currently seen as more representative of the global oil market, was talked at US$67.83/US$67.95 a barrel for June, ahead of the contract's expiry on Wednesday. US crude futures dipped 12 cents to US$63.05 a barrel.
Labels: Ashti Hawrani, crude oil, DNO, Kurdistan, Tawke
Friday, April 27, 2007
Iraqi oil ministry says oil contracts not signed with central govt. will be considered illegal
Oil
(Reuters) - Iraq's oil ministry said on Thursday foreign firms should sign oil contracts only with the central government until a new oil law is passed, adding that deals outside its jurisdiction would be considered illegal.
An oil industry source told Reuters the warning, made in a ministry statement after Oil Minister Hussain al-Shahristani met the Russian envoy to Baghdad, referred to contracts signed recently without the approval of the central government.
"Foreign companies should only sign contracts through the central government and the oil ministry. The ministry warns companies who violate Iraqi law of the consequences of their actions and any contract that is signed outside the jurisdiction of the central Iraqi government is considered illegal." Iraq's Kurdistan regional government has signed several agreements with foreign companies, including a service contract last week with United Arab Emirate's Dana Gas.
While Kurds favour agreements that would share production with foreign firms, such deals have drawn criticism from some Shi'ite and Sunni Arab nationalists. Ashti Hawrami, the Kurdish region's minister of natural resources, said it could clinch deals with any company it chose. "If they do not want to agree on the remaining contentious points we will implement our own laws for the Kurdistan region according to the constitution," he told Reuters.
Iraq's central government and Kurdish officials are currently trying to resolve disputes over the draft oil law, which would determine control of the world's third-largest oil reserves. The law has yet to be approved by parliament. Hawrami has said annexes to the draft law that would wrest oilfields from regional governments and place them under a new state-oil company are unconstitutional.
Shares of Norway's DNO, an independent producer about to start drilling for oil at its Tawke field in the Kurdish-controlled north, fell as much as 4.5 percent after the oil ministry comments appeared to cast doubt on its production agreement with the Kurdish region. Shares later pared their losses. An oil industry source told Reuters in Baghdad that the Iraqi government had no problem with a "Norwegian firm" that had signed a deal with the Kurds, without specifying DNO by name. In Olso, DNO said it was confident about the validity of its oil production deal with Iraq's regional Kurdish authorities.
Iraq's Deputy Prime Minister Barham Salih, an architect of the draft oil law, told Reuters after the cabinet passed it in February that it would allow the Kurdish regional government to review existing contracts it has signed with foreign firms to ensure consistency with the terms of the new law. Salih said a commission of independent experts would ratify consistency in case of contention and that regional authorities would be able to negotiate oil contracts with foreign companies based on "maximising revenues for Iraqi people."
An oil industry source told Reuters the warning, made in a ministry statement after Oil Minister Hussain al-Shahristani met the Russian envoy to Baghdad, referred to contracts signed recently without the approval of the central government.
"Foreign companies should only sign contracts through the central government and the oil ministry. The ministry warns companies who violate Iraqi law of the consequences of their actions and any contract that is signed outside the jurisdiction of the central Iraqi government is considered illegal." Iraq's Kurdistan regional government has signed several agreements with foreign companies, including a service contract last week with United Arab Emirate's Dana Gas.
While Kurds favour agreements that would share production with foreign firms, such deals have drawn criticism from some Shi'ite and Sunni Arab nationalists. Ashti Hawrami, the Kurdish region's minister of natural resources, said it could clinch deals with any company it chose. "If they do not want to agree on the remaining contentious points we will implement our own laws for the Kurdistan region according to the constitution," he told Reuters.
Iraq's central government and Kurdish officials are currently trying to resolve disputes over the draft oil law, which would determine control of the world's third-largest oil reserves. The law has yet to be approved by parliament. Hawrami has said annexes to the draft law that would wrest oilfields from regional governments and place them under a new state-oil company are unconstitutional.
Shares of Norway's DNO, an independent producer about to start drilling for oil at its Tawke field in the Kurdish-controlled north, fell as much as 4.5 percent after the oil ministry comments appeared to cast doubt on its production agreement with the Kurdish region. Shares later pared their losses. An oil industry source told Reuters in Baghdad that the Iraqi government had no problem with a "Norwegian firm" that had signed a deal with the Kurds, without specifying DNO by name. In Olso, DNO said it was confident about the validity of its oil production deal with Iraq's regional Kurdish authorities.
Iraq's Deputy Prime Minister Barham Salih, an architect of the draft oil law, told Reuters after the cabinet passed it in February that it would allow the Kurdish regional government to review existing contracts it has signed with foreign firms to ensure consistency with the terms of the new law. Salih said a commission of independent experts would ratify consistency in case of contention and that regional authorities would be able to negotiate oil contracts with foreign companies based on "maximising revenues for Iraqi people."
Labels: Ashti Hawrami, Baghdad government, Barham Salih, Dana gas, DNO, draft oil law, Hussain al-Shahristani, Norway, Oil Ministry, UAE
Wednesday, February 14, 2007
DNO to extract oil from Tawke well in March
Oil
(Kurdish Media) Norwegian oil company Den Norske Oljeslkep says that the first oil from the company's Tawke well in Kurdistan is on target to be extracted by the end of March this year. Major international oil companies have hesitated to become involved in Kurdistan whose ultimate relationship to Baghdad has yet to be resolved leaving the ground to a few smaller concerns such as DNO who are seizing opportunities such as Tawke that is estimated to contain 100 million barrels of oil.
For its 55 per cent stake in the venture, the Norwegian firm is undertaking to meet all costs of its production sharing agreement including installation of pipelines and central processing facilities increased its investment. The contract has yet to be endorsed in Baghdad, and while the Kurdish north and central government argue over oil licenses an even bigger issue is looming with regard to Kirkuk and its adjoining major oilfields.
Labels: DNO, Kudistan, oil, Tawke
