JWing
11-29-2010, 09:06 AM
LONDON -(Dow Jones)- Iraq's semi-autonomous Kurdish region will face financial penalties should it fail to hit oil production (http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201011290733dowjonesdjonline000 138&title=iraqikrg-to-face-penalties-if-oil-exports-fail-to-hit-target#) targets, a Baghdad government spokesman said Monday.
Exports from the Kurdistan Regional Government area will be included in the 2011 Iraqi budget, which the cabinet is expected to approve Tuesday, Ali al- Dabbagh said. Starting in 2011 the KRG should produce 150,000 barrels a day and "if it isn't produced it will be deducted from the 17.5%" share of total Iraqi oil revenues which are apportioned to the region, he said.
Dabbagh also said Iraq's next government, expected to be formed before the end of the year, "will honor all contracts signed by the last government."
Iraq has signed a number of large contracts with international oil companies (http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201011290733dowjonesdjonline000 138&title=iraqikrg-to-face-penalties-if-oil-exports-fail-to-hit-target#) as it attempts a dramatic expansion of output.
Earlier Monday, Iraqi government official Thamir Ghadban said the country's crude production capacity could increase to 8 million barrels within six to seven years, and said when Iraq's production capacity reaches that of Iran-- around 4 million barrels a day--"we will talk about joining the [Organization of Petroleum Exporting Countries] quota system."
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201011290733dowjonesdjonline000 138&title=iraqikrg-to-face-penalties-if-oil-exports-fail-to-hit-target
Exports from the Kurdistan Regional Government area will be included in the 2011 Iraqi budget, which the cabinet is expected to approve Tuesday, Ali al- Dabbagh said. Starting in 2011 the KRG should produce 150,000 barrels a day and "if it isn't produced it will be deducted from the 17.5%" share of total Iraqi oil revenues which are apportioned to the region, he said.
Dabbagh also said Iraq's next government, expected to be formed before the end of the year, "will honor all contracts signed by the last government."
Iraq has signed a number of large contracts with international oil companies (http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201011290733dowjonesdjonline000 138&title=iraqikrg-to-face-penalties-if-oil-exports-fail-to-hit-target#) as it attempts a dramatic expansion of output.
Earlier Monday, Iraqi government official Thamir Ghadban said the country's crude production capacity could increase to 8 million barrels within six to seven years, and said when Iraq's production capacity reaches that of Iran-- around 4 million barrels a day--"we will talk about joining the [Organization of Petroleum Exporting Countries] quota system."
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201011290733dowjonesdjonline000 138&title=iraqikrg-to-face-penalties-if-oil-exports-fail-to-hit-target