JWing
02-01-2011, 08:23 PM
FEBRUARY 1, 2011, 11:27 A.M. ET
By Benoit Faucon and Hassan Hafidh
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Iraqi Kurdistan is set to resume oil exports in days after an 18-month hitch, a few days later than planned, a person familiar with the situation told a London gathering Tuesday.
The resumption could offer some relief to oil markets after Egyptian disruption fears pushed prices to the $100 a barrel threshold.
Speaking to an audience at a Chatham House energy conference in London, the person said the pipeline is currently being tested and exports are due to start in the "next few days."
The autonomous region said in a statement Jan. 22 it had resolved an 18-month dispute over oil-revenue sharing with Iraq's central government, enabling international sales to resume.
Though the Kurdish authorities had said exports would restart Feb 1, the person insisted the delay was immaterial.
"There are no problems, [no] political problems," he said.
Exports are set to kick off at 100,000 barrels a day and reach about 200,000 barrels a day by year-end from fields operated by Norway's DNO International ASA and Turkey's Genel Enerji.
Crude futures Monday pushed to a symbolic level of $100 a barrel on fears oil routes crossing Egypt to western markets could be disrupted by unrest in that country but also on concerns rising oil demand won't be matched by supplies.
The Organization of Petroleum Exporting Countries, which controls close to 40% of global oil supplies, has so far seen no need to change its production cap, while experts estimate non-OPEC production will broadly stagnate in the coming months.
Against this backdrop of supply concerns, Iraq, which isn't subject to OPEC quota restrictions, has been fast ramping up output after signing 12 deals over the last year to develop some of its prized oil fields.
Production rose to 2.710 million barrels a day in January, according to Vienna-based consultancy JBC, up 230,000 barrels a day the previous month.
Iraqi Kurdistan, which signed contracts early on with the likes of Dallas-based Hunt Oil Co., has played a key part in this production boost and its role is set to increase with the exports resumption.
Iraq is targeting oil production of 8 million barrels a day by 2017, though some question whether it can reach this level.
http://online.wsj.com/article/BT-CO-20110201-711439.html
By Benoit Faucon and Hassan Hafidh
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Iraqi Kurdistan is set to resume oil exports in days after an 18-month hitch, a few days later than planned, a person familiar with the situation told a London gathering Tuesday.
The resumption could offer some relief to oil markets after Egyptian disruption fears pushed prices to the $100 a barrel threshold.
Speaking to an audience at a Chatham House energy conference in London, the person said the pipeline is currently being tested and exports are due to start in the "next few days."
The autonomous region said in a statement Jan. 22 it had resolved an 18-month dispute over oil-revenue sharing with Iraq's central government, enabling international sales to resume.
Though the Kurdish authorities had said exports would restart Feb 1, the person insisted the delay was immaterial.
"There are no problems, [no] political problems," he said.
Exports are set to kick off at 100,000 barrels a day and reach about 200,000 barrels a day by year-end from fields operated by Norway's DNO International ASA and Turkey's Genel Enerji.
Crude futures Monday pushed to a symbolic level of $100 a barrel on fears oil routes crossing Egypt to western markets could be disrupted by unrest in that country but also on concerns rising oil demand won't be matched by supplies.
The Organization of Petroleum Exporting Countries, which controls close to 40% of global oil supplies, has so far seen no need to change its production cap, while experts estimate non-OPEC production will broadly stagnate in the coming months.
Against this backdrop of supply concerns, Iraq, which isn't subject to OPEC quota restrictions, has been fast ramping up output after signing 12 deals over the last year to develop some of its prized oil fields.
Production rose to 2.710 million barrels a day in January, according to Vienna-based consultancy JBC, up 230,000 barrels a day the previous month.
Iraqi Kurdistan, which signed contracts early on with the likes of Dallas-based Hunt Oil Co., has played a key part in this production boost and its role is set to increase with the exports resumption.
Iraq is targeting oil production of 8 million barrels a day by 2017, though some question whether it can reach this level.
http://online.wsj.com/article/BT-CO-20110201-711439.html