Hue Mi
10-23-2010, 01:26 PM
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Kurdistan signed four new deals for oil exploration (http://www.aknews.com/en/aknews/2/190087/)
Friday, October 22nd 2010 11:02 AM
Sulaimaniya, Oct. 22 (AKnews) – A Kurdish official said the Kurdish Ministry of Natural Resources Wednesday sanctioned agreements with the U.S. Marathon Oil Corporation to explore oil and gas in the Kurdistan Region.
http://www.aknews.com/images/cms-image-000049371.jpg
Ali Hussein Balo, an adviser at the ministry said Friday the company will be searching four blocks in the Region according to the signed production sharing contracts (PSCs) which entitle the company 80% of the interest. The firm explores Harir and Safin blocks, northeast of Erbil, independently.
As for Sargaran and Atrush blocks, north-northwest of Erbil, the working interests of the company will decrease to 45% since the operation will be a joint venture with other companies. However, the Kurdish government will get it 20% interest from the four blocks.
As Balo stated the contract, just like the rest of the PSCs will be in effect for 20 years and the duration may be extended to five additional years, if the necessity calls.
Asked about the reaction of the Iraqi government about the new contracts, Balo said Baghdad officials have always opposed the Kurdistan oil and gas contracts for they believe any such deal should be sanctioned by Baghdad.
"We work in line with the article 22nd of the Kurdistan Oil and Gas Law ratified in 2007, therefore, we disregard Baghdad's position," he said.
One of the items that the Kurdish deputies have stressed in their government formation negotiations is that the new government should guarantee Kurds about settling the disagreements over legitimacy of Kurdish oil and gas contracts.
The adviser believed a law to transfer the authority from the oil minister to the High Oil and Gas Council can settle the issue because the Kurdistan Region has its own representative in this council.
Balo also mentioned there are 50 oil and gas blocks in the Region, 15 are still to be explored. "Any company that can meet the requirements of the ministry can apply to explore them," he added.
Over 40 foreign oil companies from 17 countries operate in Kurdistan. The Region can produce 150,000 barrels (bbl) of oil daily and the capacity is expected to reach 1 million bbl in 2013.
The Houston-based Marathon is an integrated international energy company engaged in exploration and production; oil sands mining; integrated gas; and refining, marketing and transportation operations. Marathon is the fourth largest United States-based integrated oil company and the nation's fifth largest refiner.
Reported By Dilshad Saifaddin
Lh/AKnews
Kurdistan signed four new deals for oil exploration (http://www.aknews.com/en/aknews/2/190087/)
Friday, October 22nd 2010 11:02 AM
Sulaimaniya, Oct. 22 (AKnews) – A Kurdish official said the Kurdish Ministry of Natural Resources Wednesday sanctioned agreements with the U.S. Marathon Oil Corporation to explore oil and gas in the Kurdistan Region.
http://www.aknews.com/images/cms-image-000049371.jpg
Ali Hussein Balo, an adviser at the ministry said Friday the company will be searching four blocks in the Region according to the signed production sharing contracts (PSCs) which entitle the company 80% of the interest. The firm explores Harir and Safin blocks, northeast of Erbil, independently.
As for Sargaran and Atrush blocks, north-northwest of Erbil, the working interests of the company will decrease to 45% since the operation will be a joint venture with other companies. However, the Kurdish government will get it 20% interest from the four blocks.
As Balo stated the contract, just like the rest of the PSCs will be in effect for 20 years and the duration may be extended to five additional years, if the necessity calls.
Asked about the reaction of the Iraqi government about the new contracts, Balo said Baghdad officials have always opposed the Kurdistan oil and gas contracts for they believe any such deal should be sanctioned by Baghdad.
"We work in line with the article 22nd of the Kurdistan Oil and Gas Law ratified in 2007, therefore, we disregard Baghdad's position," he said.
One of the items that the Kurdish deputies have stressed in their government formation negotiations is that the new government should guarantee Kurds about settling the disagreements over legitimacy of Kurdish oil and gas contracts.
The adviser believed a law to transfer the authority from the oil minister to the High Oil and Gas Council can settle the issue because the Kurdistan Region has its own representative in this council.
Balo also mentioned there are 50 oil and gas blocks in the Region, 15 are still to be explored. "Any company that can meet the requirements of the ministry can apply to explore them," he added.
Over 40 foreign oil companies from 17 countries operate in Kurdistan. The Region can produce 150,000 barrels (bbl) of oil daily and the capacity is expected to reach 1 million bbl in 2013.
The Houston-based Marathon is an integrated international energy company engaged in exploration and production; oil sands mining; integrated gas; and refining, marketing and transportation operations. Marathon is the fourth largest United States-based integrated oil company and the nation's fifth largest refiner.
Reported By Dilshad Saifaddin
Lh/AKnews