Sunday, November 11, 2007
KRG to announce two more oil deals
Oil, Kurdistan
(UPI) -- Iraq’s Kurdistan Regional Government will announce two more oil deals in coming days as it develops its oil sector with state-owned and private oil firms. There has been no response yet from Baghdad after the KRG’s announcement last Tuesday of another six production-sharing contracts it has signed. The KRG’s semiautonomous region in Iraq’s north has the geological makeup for major oil and natural gas deposits but has 0.5 percent of Iraq’s proven oil reserves.
Baghdad has called the KRG’s oil deals illegal, saying it needs to wait for a national oil law to be approved. That law is being held up for lack of agreement as to whether the federal government or regions and provinces have the authority to sign deals, among other reasons. KRG Natural Resources Minister Ashti Hawrami told United Press International in a telephone interview two additional oil deals, including at least one with “a Western company,” will be announced “in just a few days, maybe a week.” According to a KRG map of exploration blocks, it has 28 either open or pending contracts.
The KRG has signed deals with a number of smaller, more risk-taking firms, including Hunt Oil of Dallas. Larger firms fear blacklisting from Baghdad, which will likely have the say-so on the majority of Iraq’s oil deals. But Tuesday’s announcement of deals by the KRG shows the applicants for its deals are getting weightier. A subsidiary of MOL Hungarian Oil and Gas was part of two production-sharing contracts. India’s largest private oil company, Reliance Energy, and Central Europe powerhouse OMV, an Austrian firm, each signed two production-sharing contracts.
The KRG also awarded four “strategic blocks” to the Kurdistan Exploration and Production Co. and gave the discovered but not developed Khurmala oil field to the Kurdistan National Oil Co. Both KEPCO -- which will concentrate on exploration and production -- and KNOC -- an operator of discovered fields -- were newly formed under the KRG’s oil law but would send revenues to Baghdad to redistribute. Hawrami said the companies “answer to the Council of Ministers in Kurdistan and is monitored and regulated by the Ministry of Natural Resources in Kurdistan, and is recognized by the Parliament in Kurdistan.” KNOC will also build a 50,000 barrels per day refinery.
Labels: Hunt Oil Co., Khurmala oil field, Kurdistan, Kurdistan Exploration and Production Co., Kurdistan National Oil Co., MOL Hungarian Oil and Gas, oil, oil deals, OMV, PSCs, Reliance Energy
Friday, September 14, 2007
KRG spokesman calls for oil minister's resignation
Oil
(Voices of Iraq) - A senior Kurdish official on Thursday criticized statements recently made by the Iraqi oil minister on the relation between the federal government and Kurdistan region government, saying "it will impede the on-going negotiations on approving the oil draft law." "The recent statements by Shehristani will neither help the political process nor the on-going negotiations on the oil and gas and wealth sharing draft laws," Falah Mustafa, Foreign Relations Official in Kurdistan region government, told the independent news agency Voices of Iraq (VOI) over the phone.
Mustafa made comments to VOI on a statement made early this week by the Iraqi Oil Minister Hussein al-Shehristani in which he said that his ministry would not recognize the oil contracts concluded by the Kurdistan government with foreign companies. On Sunday, Shehristani told the government-funded al-Sabaah daily that the oil ministry had no commitment towards the oil investment contracts signed by officials from Kurdistan region government.
Mustafa accused Shehrstani of being "negative all the way," saying that he should recognize that the moves taken by Kurdistan government on oil investment contracts "come in full conformity with the powers given to it by the Iraqi constitution." Shehristani made his statement in reference to the oil contracts concluded by Kurdistan government with Hunt Oil Group for oil investment in Duhuk Kurdistan province last week.
The Iraqi Oil Minister's statement sparked a wave of criticism in Iraq's Kurdistan region leading the official spokesman for Kurdistan government to call for al-"Shehrstani's resignation." Over the last seven months, marathonic negotiations have been underway among Iraqi political blocs on a draft law on oil. Among the main differences was the relation between the federal government and the local governments in the region(s) as to the conclusion of oil investment contracts.
Mustafa made comments to VOI on a statement made early this week by the Iraqi Oil Minister Hussein al-Shehristani in which he said that his ministry would not recognize the oil contracts concluded by the Kurdistan government with foreign companies. On Sunday, Shehristani told the government-funded al-Sabaah daily that the oil ministry had no commitment towards the oil investment contracts signed by officials from Kurdistan region government.
Mustafa accused Shehrstani of being "negative all the way," saying that he should recognize that the moves taken by Kurdistan government on oil investment contracts "come in full conformity with the powers given to it by the Iraqi constitution." Shehristani made his statement in reference to the oil contracts concluded by Kurdistan government with Hunt Oil Group for oil investment in Duhuk Kurdistan province last week.
The Iraqi Oil Minister's statement sparked a wave of criticism in Iraq's Kurdistan region leading the official spokesman for Kurdistan government to call for al-"Shehrstani's resignation." Over the last seven months, marathonic negotiations have been underway among Iraqi political blocs on a draft law on oil. Among the main differences was the relation between the federal government and the local governments in the region(s) as to the conclusion of oil investment contracts.
Labels: draft oil law, Falah Mustafa, Hunt Oil Co., Hussain al-Shahristani, oil contracts
Wednesday, September 12, 2007
KRG defends oil contract with Hunt Oil Co.
Oil, Kurdistan
(Reuters) - The government of Iraq's Kurdish region on Tuesday defended an oil and gas production contract it has concluded with a U.S. company, rejecting remarks by the country's oil minister who questioned its legality. The semi-autonomous Kurdistan Regional Government (KRG) said on Saturday it had signed the production sharing contract with a unit of U.S.-based Hunt Oil Co. and with Impulse Energy Corp.
Media reports have quoted Iraqi Oil Minister Hussain al-Shahristani as saying that the deal "has no standing" because it was not approved by the central government in Baghdad. "Shahristani's recent remarks about the legality of the KRG's contracts are totally unacceptable..." said Khaled Salih, spokesman of the Kurdistan regional government, in a statement made available to Reuters. "His (Shahristani) views are totally irrelevant to what we are doing legally and constitutionally in Kurdistan.
"The deal is the first such contract since the region passed its own oil law in August, while Iraq's parliament failed to pass a national law after months of negotiations. The national law is crucial to regulating how wealth from Iraq's oil reserves, the world's third largest, will be shared out among its sectarian and ethnic groups. The reserves are mainly in the north and the south of the country. "What right does Shahristani have to question the legitimacy of contracts awarded by KRG acting under the powers of the newly enacted law passed by the unanimous decision of the Regional Parliament and according to the new Iraq constitution?" the statement said.
The deal covers exploration activity in the Dihok area. Hunt Oil Co. of the Kurdistan Region will begin geological survey and seismic work by the end of 2007 and has plans to drill an exploration well in 2008. The regional government has signed five production sharing agreements earlier with foreign companies.
Labels: Duhuk, Hunt Oil Co., Hussain al-Shahristani, Impulse Energy Corp., Khaled Salih, KRG, oil contract
Tuesday, September 11, 2007
Iraqi oil minister says new U.S. - KRG oil deal is illegal
Oil, Kurdistan
(AP) -- An agreement announced this weekend between U.S.-based Hunt Oil Co. and the self-ruled Kurdish administration of northern Iraq to explore for oil is illegal, Iraq's oil minister Hussain al-Shahristani said Monday. Those comments underscore the central government's view that exploration contracts with foreign companies should be signed only after the adoption of a new national oil law, which has been stalled for months.
"Any oil deal has no standing as far as the government of Iraq is concerned," al-Shahristani said as he arrived for an OPEC meeting in Vienna. "All these contracts have to be approved by the Federal Authority before they are legal. This (contract) was not presented for approval. It has no standing."
Hunt Oil, a privately held independent oil company, and the Kurdish regional government said Saturday they had signed a production-sharing contract for petroleum exploration in the Kurdistan region of northern Iraq. Terms were not disclosed. Dallas, Texas-based Hunt declined to comment Monday. The deal is one of several the Kurds have signed with foreign oil companies in the past few years and the first since they put their own oil law into effect in August.
These deals have angered Baghdad, but the Kurdish region appears determined to advance oil exploration in the three-province area they govern in northern Iraq, as Iraq's long-delayed federal oil law remains hobbled by disagreements -- among others, about the control of revenues. Despite Iraq's vast oil reserves, major international companies have sat on the sidelines, not only for security reasons but because of the absence of legislation governing the industry and offering protection for investments.
"Any oil deal has no standing as far as the government of Iraq is concerned," al-Shahristani said as he arrived for an OPEC meeting in Vienna. "All these contracts have to be approved by the Federal Authority before they are legal. This (contract) was not presented for approval. It has no standing."
Hunt Oil, a privately held independent oil company, and the Kurdish regional government said Saturday they had signed a production-sharing contract for petroleum exploration in the Kurdistan region of northern Iraq. Terms were not disclosed. Dallas, Texas-based Hunt declined to comment Monday. The deal is one of several the Kurds have signed with foreign oil companies in the past few years and the first since they put their own oil law into effect in August.
These deals have angered Baghdad, but the Kurdish region appears determined to advance oil exploration in the three-province area they govern in northern Iraq, as Iraq's long-delayed federal oil law remains hobbled by disagreements -- among others, about the control of revenues. Despite Iraq's vast oil reserves, major international companies have sat on the sidelines, not only for security reasons but because of the absence of legislation governing the industry and offering protection for investments.
Labels: Hunt Oil Co., Hussain al-Shahristani, KRG, Kurdistan, oil, oil exploration, PSC
Monday, September 10, 2007
Texas oil company signs agreement with KRG
Oil, Kurdistan
(Associated Press) - Texas' Hunt Oil Co. and Kurdistan's regional government said Saturday they've signed a production-sharing contract for petroleum exploration in northern Iraq, the first such deal since the Kurds passed their own oil and gas law in August. A Hunt subsidiary, Hunt Oil Co. of the Kurdistan Region, will begin geological survey and seismic work by the end of 2007 and hopes to drill an exploration well in 2008, the parties said in a news release. Terms of the deal were not disclosed.
Hunt is a privately held independent oil company based in Dallas. A third partner, Impulse Energy Corp., also has a stake in the project. "We're very pleased to have the opportunity to be a part of these landmark events by actively participating in the establishment of the petroleum industry," Ray L. Hunt, Hunt's CEO, said in a statement. Revenue will be shared by the KRG throughout Iraq, consistent with the Iraq constitution and the Kurds' new petroleum law, issued by the Kurdistan National Assembly early last month.
Despite Iraq's vast oil reserves, major international companies have sat on the sidelines, not only for security reasons but because of the absence of legislation governing the industry and offering protection for investments. A draft oil law for all of Iraq has been bogged down for months, in part because of disputes over who will control the proceeds.
In August, however, the Kurdish self-governing region in northern Iraq enacted its own law governing foreign oil investments. The move angered the central government in Baghdad, but the Kurds are determined to push ahead with oil exploration.
IEC representative, Mr. Mathew Heysel, added, "We are pleased to partner with Hunt Oil on this important project to develop the oil and gas resources in the Kurdistan Region." Hunt Oil Company of the Kurdistan Region is a wholly-owned affiliate of the Hunt Oil Company, Dallas, Texas, USA which is a part of the Hunt family of companies directed by Ray L. Hunt. Hunt Oil Company is one of the largest privately held independent oil companies and conducts a variety of petroleum related operations in several regions of the world, including a liquefied natural gas (LNG) project in Peru which is considered the largest project ever built in that country. In addition to oil and gas interests, the Hunt family of companies is engaged in real estate; private investments; refining; electrical power, ranching and farming interests.
Impulse Energy Corporation is a private company that invests in the energy sector in developing economies targeting oil, gas, and power.
Hunt is a privately held independent oil company based in Dallas. A third partner, Impulse Energy Corp., also has a stake in the project. "We're very pleased to have the opportunity to be a part of these landmark events by actively participating in the establishment of the petroleum industry," Ray L. Hunt, Hunt's CEO, said in a statement. Revenue will be shared by the KRG throughout Iraq, consistent with the Iraq constitution and the Kurds' new petroleum law, issued by the Kurdistan National Assembly early last month.
Despite Iraq's vast oil reserves, major international companies have sat on the sidelines, not only for security reasons but because of the absence of legislation governing the industry and offering protection for investments. A draft oil law for all of Iraq has been bogged down for months, in part because of disputes over who will control the proceeds.
In August, however, the Kurdish self-governing region in northern Iraq enacted its own law governing foreign oil investments. The move angered the central government in Baghdad, but the Kurds are determined to push ahead with oil exploration.
IEC representative, Mr. Mathew Heysel, added, "We are pleased to partner with Hunt Oil on this important project to develop the oil and gas resources in the Kurdistan Region." Hunt Oil Company of the Kurdistan Region is a wholly-owned affiliate of the Hunt Oil Company, Dallas, Texas, USA which is a part of the Hunt family of companies directed by Ray L. Hunt. Hunt Oil Company is one of the largest privately held independent oil companies and conducts a variety of petroleum related operations in several regions of the world, including a liquefied natural gas (LNG) project in Peru which is considered the largest project ever built in that country. In addition to oil and gas interests, the Hunt family of companies is engaged in real estate; private investments; refining; electrical power, ranching and farming interests.
Impulse Energy Corporation is a private company that invests in the energy sector in developing economies targeting oil, gas, and power.
Labels: Hunt Oil Co., IEC, Impulse Energy Corp., KRG, Kurdistan, Mathew Heysel, petrol exploration, PSC, Ray L. Hunt
