Hermes
08-19-2008, 06:11 AM
I wonder what they are up to now ...
KRG halts production at Norway firm’s Iraq field
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Published: Tuesday, 19 August, 2008, 08:37 AM Doha Time
OSLO: Oslo-listed oil exploration company DNO International said yesterday that oil output at its Iraqi Tawke field has been halted by the Kurdish Regional Government (KRG), and won’t start up again until late August-early September.
“The KRG has temporarily put on hold all the production for the local market in the Kurdistan Region, to enable the local authorities to review the licensing, compliances and uniformity of procedures applied to the small topping plant owners,” DNO said.
DNO’s Iraqi oil output is sold into the local market whilst it awaits the required permit to export through Turkey.
Discussions between Iraq’s central government and the KRG over ownership and export of oil has long delayed DNO’s plans for export.
Analysts described the news as “very surprising,” and said it creates more uncertainty over an already controversial licence.
Analyst Gunnar Holen of Corporate Advise and Research said: “There might be something going on in terms of negotiations” between the central and regional governments.
He rates DNO at buy with a target price of 16 Norwegian kroner, “but that’s dependent on getting an export license,” he noted.
“According to KRG it is expected that these formalities will be completed during August, with production resuming by late August-early September,” the company said.
Glitnir Securities analyst Christian Yggeseth said he doesn’t see any reason to doubt DNO management expectations on field return, “but of course it creates a lot of uncertainty in the market. It’s not viewed as a good thing.”
Yggeseth rates DNO buy with a target price of 11.50 kroner which takes into account a 40% chance of the company getting an export license for Tawke. – Dow Jones Newswires
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=236523&version=1&template_id=48&parent_id=28
KRG halts production at Norway firm’s Iraq field
http://www.gulf-times.com/site/images/spacer.gif
Published: Tuesday, 19 August, 2008, 08:37 AM Doha Time
OSLO: Oslo-listed oil exploration company DNO International said yesterday that oil output at its Iraqi Tawke field has been halted by the Kurdish Regional Government (KRG), and won’t start up again until late August-early September.
“The KRG has temporarily put on hold all the production for the local market in the Kurdistan Region, to enable the local authorities to review the licensing, compliances and uniformity of procedures applied to the small topping plant owners,” DNO said.
DNO’s Iraqi oil output is sold into the local market whilst it awaits the required permit to export through Turkey.
Discussions between Iraq’s central government and the KRG over ownership and export of oil has long delayed DNO’s plans for export.
Analysts described the news as “very surprising,” and said it creates more uncertainty over an already controversial licence.
Analyst Gunnar Holen of Corporate Advise and Research said: “There might be something going on in terms of negotiations” between the central and regional governments.
He rates DNO at buy with a target price of 16 Norwegian kroner, “but that’s dependent on getting an export license,” he noted.
“According to KRG it is expected that these formalities will be completed during August, with production resuming by late August-early September,” the company said.
Glitnir Securities analyst Christian Yggeseth said he doesn’t see any reason to doubt DNO management expectations on field return, “but of course it creates a lot of uncertainty in the market. It’s not viewed as a good thing.”
Yggeseth rates DNO buy with a target price of 11.50 kroner which takes into account a 40% chance of the company getting an export license for Tawke. – Dow Jones Newswires
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=236523&version=1&template_id=48&parent_id=28