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BIG WAVE
05-12-2006, 09:15 PM
LONDON, May 12, 2006 (RFE/RL) -- Oil-prospecting activities in Kurdish-administered northern Iraq are gathering pace following a Norwegian company's discovery of new oil reserves there, while other small international oil firms from Canada and Britain have also become involved.

Possibly New Oil Fields

Helge Eide, managing director of DNO of Oslo, Norway, says the company has been active in the Kurdish-administered region for some time and already has found new oil reserves. He said the company's first well, Tawke No 1, is now getting ready to start test-producing oil.

"We are progressing with our early test-production plan with the objective to start test production [in the] first quarter of next year," Eide said.
It is not yet clear whether the regional licenses would also be recognized by the central government in Baghdad, because the new Iraqi Constitution appears to many observers to give some licensing rights to both governments.

Legal Gray Area

Experts agree that the prospects for new oil finds seem good. But some are worried about the legal framework and validity of the granted licenses. Catherine Hunter, a senior analyst with Global Insight in London, said it is not yet clear whether the regional licenses would also be recognized by the central government in Baghdad. This is because the new Iraqi Constitution appears to many observers to give some licensing rights to both governments.
http://www.rferl.org/featuresarticle/2006/5/D8BA01FD-1FFD-4E48-BDAB-938E7AF86CC7.html

BIG WAVE
05-12-2006, 09:16 PM
Still, whatever the total reserves turn out to be, the Kurdistan authorities' optimism seems to be bringing in more, newly interested oil companies. Most recently, Sterling Energy, the first company from Britain, has been granted an exploration license in the region, too.

http://gdb.rferl.org/DB4D40C1-900E-4600-8716-2599F511A816_w220.jpg
An oil refinery in Al-Sulaymaniyah, in Iraq's Kurdish region


DNO's Eide said he welcomes the competition. "It's positive that other companies now are also starting operations up there," he said. "OK, we were very early and we have been progressing very well with the seismic and drilling, but I think in general it's positive that other companies now are entering this area."