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
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
