Kurdistans Oil Development.

Gulf Keystone Petroleum Ltd. (GKP) wants to sell its stakes in an Algerian project and an energy concession in semi-independent Kurdish region enclave, a company official said.

Gulf Keystone is seeking a buyer for its 38 percent holding in Algeria’s HBH project, Legal and Commercial Director Tony Peart said today. The Hamilton, Bermuda-based company also aims to sell its 20 percent interest in the Akri Bijeel block in the KRG, he said.

British Gas, a brand of Centrica Plc (CNA), the U.K.’s largest natural-gas supplier, operates HBH. Hungary’s Mol Nyrt. is the operator of the block in the Iraqi region controlled by the Kurdistan Regional Government, Peart said.

“This is a strategic decision to sell because we want to focus on larger opportunities in Kurdistan,” he said in an interview in Istanbul at the Iraq 2011: Future Energy conference organized by The Energy Exchange.

“We want to focus on projects with larger gas reserves, as we have 60 million barrels of oil equivalent in Algeria, and by contrast, there are reserves of 5 billion barrels of oil in place in Shaikhan,” a separate concession the company operates in the Kurdish region, he said.

Gulf Keystone started production tests earlier this year and is ready to ship about 5,000 barrels a day from Iraq, if the Kurdistan Regional Government approves, he said.

Source: Bloomberg

 

04/10/2011 12:48
ShaMaran a Canadian oil company operating in Kurdistan announced that they have found 2 more oil fields in Kifri - Pulkhana . until now the company has dug 2333 wells and has tested the quality of the oils 6 times . Gravity is 28-34 and the company is currently preparing to dig another oil field in Pulkhana field according to the website. the company gets 60% of shares and both KRG and Petoil get 20% respectively .

ShaMaran oil since its first operation in Kurdistan has found 4 oil fields , they are Pulkhana , 3arbat , K42 and Atrush fields , they are almost near completion and the company is preparing to dig more fields in a new future.

there are currently 35 oil producing companies operate in Kurdistan from 17 countries .


source: oilandgas.com

 

October 14, 2011

ERBIL-Hewlêr, Kurdistan semi region — Iraq's semi-autonomous region of Kurdistan has an ambitious plan to produce 1 million barrels of oil per day by the end of 2015, the Kurdish ministry of natural resources said on Thursday.

The near future plan is to have the capacity to produce 200,000 bpd by the end of 2011, the ministry said.

Kurdistan regional government KRG has signed several agreements with foreign companies since 2007,
including Norway's DNO and Turkey's Genel Enerji and China's Sinopec .

"In the space of four years we have increased production from a standing start to about 200,000 barrels per day by the end of this year," said Saad Sadollah, the ministry commercial adviser.

"We are on track for our, I guess, ambition of reaching 1 million barrel per day by 2015 and we believe we have the investments and the ability to achieve that," said Saad,www.ekurd.net addressing investors and businessmen during a financial conference held in Erbil, the capital of Kurdistan region.

In addition to the plans to increase oil production, the region also has plans to upgrade its infrastructure to cope with the production increase.

"We have two main refineries within Kurdistan producing about 60,000 barrels per day, and they are in line to reach 160,000 bpd by the end of next year," Saad added.

"Today we have at least 42 PSCs in Kurdistan; 20 companies from about 17 countries show I guess the international appetite for Kurdistan," he said.

Kurdistan's oilfields saw little development during the Saddam Hussein era.

Since the dictator was ousted in 2003, companies from countries ranging from Turkey to China to the United States have moved into the region, even though the risks still exist.

"Over the last four years we have over 40 exploration wells and as a result of this activity we believe we have at least 45 billion barrels of oil and 100 to 200 tcf of gas which make us probably one of the top 10 or top 20 oil reserves in the world." Saad said.

The figure has not been independently verified, but if accurate, it would mean Kurdistan has more oil than the North Sea has produced over the past 40 years.

Semi-autonomous since 1991, Kurdistan has enjoyed more security than the rest of Iraq, where the central government is still fighting insurgents and militia more than eight years after the U.S. invasion that toppled Saddam.

The Kurds and Iraqi Arabs have a long territorial dispute over areas of northern Iraq, and Baghdad and the KRG still disagree over the legality of contracts signed with foreign firms and over revenue-sharing.


ekurd.com

 

Erbil October 22 (PNA) - Kirkuk North Oil Company declared that the exportation of oil in Kurdistan Region oil fields has increased to more than 80 thousand barrels per day.

Soumaria news revealed this information from one of the officials of an official of the company, that he declared that now Kurdistan region is exporting more than 80 thousand barrels per day. The source declared that this will increase to 100 thousand barrels per day.


The source mentioned that the way of exportation of oil would be through Turkish border.


PNA

 

November 11, 2011

In a game changing oil deals in Kurdistan region, Exxon Mobil has signed a contract for six blocks with Kurdistan Regional Government, reported the FT. There were rumours about a major US oil company circling in Kurdistan region, but expert dismissed any deals because of the danger of being black listed by Baghdad.

What Exxon has done is of immense importance to the KRGs authority and its influence in the region. However, by entering the deal, Exxon will be risking West Qurna contract, which is the jewel in the crown of Iraqi oil fields.
Iraqi officials has told Reuters today that they were aware of the deal, but so far Exxon has not made any comments and senior Iraqi politicians have told Reuters that Exxon has been warned of the consequences. Abdul-Mahdy al-Ameedi, director of the Iraqi oil ministry's contracts and licensing directorate, told Reuters "the government had sent three letters to Exxon Mobil last month warning of dire consequences".

It is not clear if the Exxon deal will exacerbate the existing problems between Baghdad and the KRG. Gauging early reactions and efforts to stop the deals by Iraqi officials, the deal could lead to further confrontation between the central government and the KRG in the coming days. However, challenging Exxon mobile will be a risky strategy for Al Maliki. Moreover the presence of Exxon in KR could mean a balance in power between the two sides and possible breakthrough dealing with diffrances.

The move by Exxon could be part of a deal to harmonise relations between the two sides, but so far there is no deviance of such deals.

Earlier this year wikileals files has revealed that the state department has advised against, US companies investing in Kurdistan region. It emerged that Marathon entered the region despite contrary advice from the US government and the move has given them the advantage of being there early. Nevertheless, the latest Exxon move and the entrants of Hess into the region is an indicator that the advice might have changed, which has its political significances.

It is not yet clear who has instigated the deal, but it is needless to say the announcement has come less than a week before the CWC oil and gas conference in Erbil and while PM,www.ekurd.net Barham Salih has met Iraqi leaders and then US officials in Washington. Salih has been meeting US diplomats for a week now in Washington and it may be that his team and the US office can take some credit for facilitating the deal. Moreover, attracting the largest oil company in the world will also vindicate, Ashti Hawrami, Kurdish Natural resources minister's aggressive oil policy in the region, which has attracted much criticism.

While exploration contracts in Iraq are still not finalised for next year's auction and the terms are yet to be finalised, it appears that oil majors are turning their attention to the more attractive Kurdish PSCs on offer. Baghdad's exploration contracts are not hugely different from its Kurdish PSC counterpart, however the Kurdish contract risk and reward ratio is more balanced and some would say it is in the favour of explorers. The KRG contract gives the operators a higher rate of return and the windfall will be significantly higher from Baghdad contracts if the oil prices stay at the current levels.

Kurdistan has signed over 40 contracts since the fall of Saddam and Exxon is the largest of those companies. The right signals were coming out of Kurdistan when Tony Hayward, ex-BP boss, made his move to the region backed by Nathanial Rothschilds through Vallares investment vehicle. The deal with Genel Energy made Hayward one of the biggest operators in the region.

The Exxon deal comes at a time when interest from investors in Kurdistan region has never been greater. Last week Citi published a report detailing the opportunities in Kurdistan region and it said that based on the US geological survey, the region could hold over 50 billion barrel of oil. Furthermore, Gulfkeystone petroleum has revised up its gross oil in place volume, P90 from 4.9 to 8 billion barrel of oil. With this amount of reserves, Kurdistan would make it to the top 10 list of world oil reserve.

The main sticking points for contracts signed with the KRG is the oil and gas law, the recognition of the contracts by Baghdad and resolving the payment mechanism. Although there are many reports that a deal has been reached on the outstanding issues, nothing concrete has emerged. The differences between Baghdad and KR are still significant and it boils down to the point of who controls oil policy and where. The KRG has made it clear that it won't budge and a beleaguered Iraqi government find it more difficult by the day to exert influence.

The other major issue which faces operators in Kurdistan is the infrastructure limitations. Saraqala block - WesternZagros, Atrush and three other blocks will soon be coming online with a respective production of at least 5000 bopd each. The delivery will have to be carried out overland by vehicles in absence of pipelines. For the time being, the method of delivery will give the companies the cash flow they require in short term but it is not sustainable for lager production.

DNO has diverted a large chunk of its oil production into the local market as oil production from Kurdistan dropped from 180000 to only 50000. The drop was reportedly due to technical problems with northern oil company pipelines but more likely because of none payment from the central government. If the disputes with Baghdad are not resolved soon, others will follow suit and more and more of the Kurdish oil will be trucked and not contribute to the overall Iraqi production.

ekurd/Financial times

 

November 13, 2011

ERBIL-Hewlêr, Kurdistan region 'Iraq', — Iraq's semi-autonomous northern Kurdistan region has agreed with the central government to boost the region's crude oil exports to 175,000 barrels per day next year, Kurdish Prime Minister Barham Salih said on Sunday.

Exports from the region, which were restarted in February following a long halt due to a dispute with Baghdad, had reached as high as 160,000 bpd in recent months.

Salih met with Iraqi Prime Minister Nuri al-Maliki in Baghdad recently to discuss oil disputes between the central government and the semi-autonomous northern region. Iraqi officials said the two had agreed during the meeting to work on amendments to a controversial oil law.

"During our recent visit to Baghdad we also agreed that for next year the level of exports should increase to 175,000 barrels per day," Salih
Iraq's Kurdistan PM Barham Salih.
said during a speech at an oil and gas conference in the Kurdish capital, Erbil.

Baghdad and Erbil have longstanding disputes over oil and land. The Kurdistan Regional Government has signed a series of oilfield development deals with foreign companies that the central government considers illegal.

The disputes halted Kurdish exports in late 2009. They resumed in February.

Helge Eide, the chief executive of Norwegian group DNO said he expects to increase crude output capacity at the Kurdish Tawke oilfield to 100,000 bpd in 2012 from about 70,000 bpd now. Actual production at the field is 50,000 bpd.

Iraq exported a total of 2.088 million bpd in October,www.ekurd.net most of it from southern fields. Exports from the northern fields around Kirkuk were about 460,000 bpd.

Iraqi Kurdistan has enjoyed more security compared with the rest of Iraq, which is still struggling with stubborn violence from insurgents and militias more than eight years after the U.S. invasion that toppled Saddam Hussein.

By Serena Chaudhry.

Reuters

 

13/11/2011 14:26

Erbil, Nov. 13 (AKnews) - Hundreds of oil companies have come to Kurdistan Region for the first international conference on Iraqi and Kurdish oil and gas in Erbil.

Iraq Petroleum 2011 Oil & Gas Conference has been arranged by CWC Group in partnership with Iraqi Kurdistan Region Ministry of Natural Resources.

Kurdistan Region Prime Minister Barnham Saleh, the speaker of the Kurdistan Region Parliament Kemal Kirkuki, and Turkish deputy energy minister Yusuf Yazar attended the conference.

The conference will last three days, the participants will discuss methods to develop the oil fields of Iraq and how to attract investors to Kurdistan, David Barbara conference supervisor said.

Saleh said the conference is a clear sign that Kurdistan Region is safe and secure and there are numerous investment opportunities waiting for investors in Kurdistan, especially in oil and gas sector.

He added Kurdistan Region has followed the Iraqi constitution for digging and selling its oil: "We comply with the Iraqi constitution and the steps taken so far were lawful and constitutional."

As for Kurdistan Region's suspended petroleum file, the PM said his government has agreed with Baghdad to develop the Kurdistan oil sector and increase oil exports to 175,000 bpd in 2012.

Later Ashti Hawrami, Kurdistan Region's natural resources minister, said the Kurdish government is currently involved in talks with foreign companies to work in developing its oil fields.

He added his ministry has devised a five-year plan for this purpose, but he did not provide any details.

Reported by Fryad Mohammed

LH/JS/AKnews

 

Genel Enerji AS plans to build a pipeline that will connect its fields in the Kurdish regions in northern Iraq to a port in Turkey on the Mediterranean, the Financial Times reported on Monday. The pipeline will have a capacity to export 400,000 barrels of oil a day, it said, citing Tony Hayward, the former head of BP Plc, who runs the investment company Vallares Plc that has announced an agreement to merge with Genel Energi. bloomberg.com

http://www.ekurd.net/mismas/articles/misc2011/11/kurdlocal1001.htm

 

13.11.2011

Ladies and Gentlemen

I am truly honoured to welcome you all to the first Oil and Gas conference in Erbil. Not long ago, holding such a conference in Kurdistan was beyond anybody’s dream, it was unimaginable to say, the least. I thank CWC for working to organize this conference and I again welcome you and hope that you will enjoy your time in Erbil and learn about the history of Erbil, its citadel and to learn about the culture of Kurdistan.

Gathering such a distinguished and diverse crowd of businesspersons, investment bankers and industrialists under one roof highlights the new status of Kurdistan as a major economic player internationally and indeed domestically in Iraq as it helps the country as a whole to move forward and progress.

And progress we have achieved. We have seen this wonderful documentary by my good friend Gwynne Roberts, who is also a Welshman. He was with us during those difficult days when my country was being targeted by chemical weapons and the regime in Baghdad under Saddam Hussein was pursuing a vile policy of genocide and ethnic cleansing, much of which was paid for by the oil money. Indeed the challenge for us is to turn oil from the curse it has been to the blessing that we should have.

The progress that you see in Kurdistan today, may be impressive, but it can only be understood in the proper context of the arduous journey that we have embarked on. In the 70s and 80s this was a devastated homeland, this was a devastated wasteland, more than 4,500 villages were totally destroyed by Saddam Hussein’s regime, and Kurdistan was under a trio of economic embargoes, very little of infrastructure, only one university, very few schools, very few hospitals and very few services.

Our economy today is moving on, and is moving forward. And many statistics point to an amazing transformation of Kurdish life, whether it is in the number and quality of universities that we have, the number of schools, the number of hospitals, and GDP per capita income, that I can relay to you, in 2002, according to the World Bank, was about $375 dollars, whereas today our estimates suggest that it is at least $5,500 dollars GDP per capita income. Growth rate in Kurdistan is expected, according to revised estimates next year to be about 12%.

This economy continues to rapidly progress and investment in non-oil sectors alone exceed $16 billion, including Housing, Banking, Tourism, Industry, Agriculture, education, health and others sectors. In 2002, the annual budget of Kurdistan was $100Million. In 2011, we had $10Billion of government expenditure. In 2012, we expect that to rise to $13Billion.

This is significant by any standards, but I think what we aspire to is much more. And I think this country Kurdistan, Iraq are capable to delivering far more opportunities for its own people and indeed for international investors.

In the oil and gas sector we have signed over 45 Production Sharing Contracts for oil exploration, with consortia belonging to 17 different countries – some have already started producing oil. In 2011, we will meet our commitments as stated in the Iraqi national budget to export an average of 100,000 bpd. We have already agreed with Baghdad to increase this to 175,000 bpd for next year.

• In operational terms, we have seen a steady rise in activities in 2011, with seismic and drilling activity increasing as the international oil companies implement their work plans. There have also been a number of new entrants to the market in 2011 and we are pleased that our policies are proving to be the right ones to attract world class companies to invest in Kurdistan. We are pleased with the vote of confidence in our investment-friendly climate and in our security and stability that these contracts represent.

The days when Kurdistan was an isolated economic backwater are over. If our production continues to increase, as we expect it to, Kurdistan could within a few years become a net contributor to the Iraqi budget. The increase in revenues will underpin the acceleration in the country’s economic reconstruction.

In this context, I want to recognise the efforts of our Ministry of Natural Resources, and my good friend; Ashti Hawrami and his team for what they have done to developing our oil resources and putting in place the right policies in the context of our oil and gas law to this effect.

Ladies and Gentlemen:

After the end of tyranny of Saddam Hussein and the liberation of Iraq in 2003, the people of Kurdistan have made a deliberate choice. The choice of living in a pluralistic, federel, democratic, and constitutional Iraq. Kurds have a right to self determination and no kurd will be dissuaded of the commetment to that very basic human and national rights. But we were very deliberate and very serious about commitment to a federal democratic Iraq.

We believe that the era of centralized system of government that invariably ends with dictatorship and tyranny has been proven a total and utter failure in Iraq. We believe federalism is not only good for Kurdistan but it is a safety net, an insurance policy for a united Iraq. And it is also of significance to all the communities of Iraq. It is, therefore, of little surprise to me to see that more and more of our Iraqi compatriots of ours are thinking along the same lines and are looking to Kurdistan for inspiration. They look at Kurdistan as a successful model. And if Kurds can do it through decentralization and federalism, why they should be denied that very basic right enshrined in the constitution. I believe Kurdistan’s advancement, is proving to be a catalyst for a successful democratic and federal Iraq.

The passage of the Kurdistan oil and gas law was a crucial step for the Kurdistan Region. Our law is consistent with Iraq’s federal constitution and creates a modern, investment-friendly and transparent legal framework for the oil industry to work in. Our law is constitutionally valid, endorsed and ratified by an elected legislative body, recognized in the country’s federal constitution. We are in no doubt that it is providing a much-needed contribution to Iraq’s public revenues.

Ladies and Gentlemen:

We are committed to promoting a democratic¡ federal¡ and prosperous Iraq. On the eve of liberation of Iraq, many predicted that Kurdistan will be a source of instability and problems and conflict in the post-Saddam Iraq. In reality, however, Kurdistan emerged as the most stable part of Iraq - a hub of economic activity - and a promoter of regional stability. Kurdistan has emerged as indispensable link of trade and economic cooperation among our neighbours and a gateway to the wider Iraqi market. We have a major stake in a successful and strong Iraq- federal democratic Iraq, and I expect Kurdistan will continue to play an active and important role in Iraq for years to come. We are seeking coordination and cooperation with the federal government in Baghdad to achieve our goals—goals that are in the best interests of all the Iraqi people.

This requires that we work hard with our partners in Baghdad to promote economic prosperity; specifically, it requires us to work hard together to ensure the implementation of the necessary laws and regulations that allow for this objective of prosperity to be achieved, including the ratification and implementation of a new package of hydrocarbon laws.

We remind our colleagues in Baghdad that Kurdistan’s success is a success for the whole of Iraq. Every barrel of oil produced in Kurdistan is added revenue to Iraqi treasury. We affirm our commitment to the Iraqi constitution which stipulates that oil revenues end up with the federal treasury and redistributed in accordance with Iraqi constitution among all the regions of Iraq.

This year we achieved an important arrangement with our colleagues in Baghdad- by which oil produced in Kurdistan was exported and parts of the costs of production were paid to the companies. During my recent visit to Baghdad, we also agreed that for next year the level of exports should increase to 175,000 bpd and also to review the auditing procedures to enable the payments to the companies with less bureaucratic complexities.

We agreed with Prime Minister Maliki to submit the draft oil law of 2007 to parliament before the end of the year. If we can deliver on this, this will be an important step to resolving an important issue of contention in this area, and I believe it will be a major contribution to the political stability and economic prosperity of Iraq.

I know and you know, there are dissenting voices in certain circles in Baghdad- we heard few of them recently. My response is that we should move on. Eight years on from the demise of Saddam Hussein, Iraq’s oil exports are still stagnant and far below what Iraq’s reconstruction needs. Iraq needs to maximize revenues in the shortest possible of time to overcome the legacies of destruction, mismanagement and poverty that the former regime has left us. Once again, I say it to the doubters and dissenters in Baghdad every barrel of oil produced in Kurdistan is added revenue for all the people of Iraq and this should be the focus of our attention.

I also say to our partners in Baghdad very clearly and directly: Kurdistan has a constitutional right to developing its oil resources—and there is no way that we will allow ourselves ever again to be held hostage to the whims of bureaucrats in Baghdad.

continued ...

 

That history that Gwen Robert put before you is one that we cannot ignore that easily. The oil revenues of Iraq must be turned from the curse it has been to a blessing for all the people of Iraq and we should be pursuing economic policies that will ensure the best usage of these resources, maximise revenues in the shortest possible time so that Iraqi reconstruction can take on and we can move our country forward.


Ladies and Gentlemen

I am also proud to tell you that our government is committed to transparency. We have recently published all the production sharing contracts, at least 42 of them so far, 3 or 4 that need to be also published very soon. We have enshrined in our contracts a commitment to EITI (the Extractive Industry’s Transparency Initiative) as required by the oil and gas law of Kurdistan. But we will need to ensure also that our development of oil sector and watch for any potential pitfalls, hence rendering it imperative that we strengthen our legal and administrative process to ensure that the international standards we have adopted and remain committed to continue to be effective and so that our investors remain protected.

In Kurdistan, we have a modern investment law that is conducive to economic growth and an internationally commended oil law. Investors must take this opportunity to come to our region and when circumstances permit, expand their ambitions to the rest of Iraq. Our country is rich and diverse. Our diversity is a sign of our strength, and one that we invite investors to come and see for themselves.

From our perspective it is important to diversify. While much attention has been on the exploration and upstream activities, I want to invite you to also be interested in the downstream area. And again, the vision Kurdistan as the stable part of Iraq, an economic hub, a gateway to the rest of Iraq. Your investments in Kurdistan are not investments in the Kurdish market alone, no matter how important that may be, but it is also an investment in the larger Iraqi market.

Another untapped sector in Kurdistan is the mining sector; Kurdistan is one of the richest areas of Iraq for its natural resources; the geological surveys indicate we have large deposits of phosphate, iron, copper, urea and marble to name but few. We will be drawing a road map for these resources, with the aim of utilising them in the interests of our people.

Another investment that we at the KRG are determined to make is in our people; it was the policy of the KRG to develop the human resources of our country and the human capacity in our society. We have an ambitious scholarship program and I commend the oil companies that have invested in education and the building of schools and they helped the universities some of which we have seen during that important documentary that Gwen has produced. At the end of the day the challange for us in the government and the challenge for you, the oil companies, is to ensure that the communities feel the benefits from investment in oil. The more we invest locally, the more we invest in people and improve the quality of life of people, the more support and stake we have from our communities which is most important, and I also dare say this will be what should be held out as an example to the rest of Iraq.

Ladies and Gentlemen

We are in the beginning. As some reporters have recently identified Kurdistan as the last frontier for oil exploration, I dare dream that from the devastation and the destruction and agonies of genocide, we truly can eye a future that is democratic, that is prosperous, a future in which Kurdistan will not be the case of genocide and victimisation of ethnic cleansing but can be a pillar of stability, prosperity, a hub for economic activity, a link among the nations of this part of the world and a gateway to a prosperous democratic Iraq.


http://www.krg.org/articles/detail.asp?rnr=223&lngnr=12&smap=02010100&anr=42263

 

Erbil, Kurdistan Region - Iraq (KRG.org) - The Kurdistan-Iraq Oil and Gas Conference in Erbil heard confirmation that the Kurdistan Regional Government has signed an oil exploration contract with ExxonMobil, the world's largest oil company.

Ashti Hawrami, the minister for natural resources, told the conference that the KRG had signed a contract with ExxonMobil and that the federal government was kept informed throughout the negotiations. He said, "This will make a dynamic change in the region and will lead to mergers and acquisitions." He said that Kurdistan had initially signed contracts with "small and beautiful" companies and was now working with "the giant and magnificent".

In answer to questions from the audience, Dr Hawrami said the ExxonMobil contract was signed on October 18 and involves six exploration areas. "This agreement is good news not just for us but for all Iraq. This is also good news for the industry. It adds more value in terms of expertise and investment," he said.

Dr Hawrami was speaking at the two-day conference which attracted hundreds of industry executives from around the world, including representatives from major oil companies not currently working in the region

The conference was opened by Prime Minister Barham Salih on Sunday and was attended by Kamal Kirkuki, the Speaker of the Kurdistan Parliament, Selahattin Cimen, Turkey's deputy energy minister, and Britain's ambassador to Iraq Michael Aron.
"Not long ago holding such a conference in Kurdistan was beyond a dream," said Dr Salih in his opening speech. He set out the economic deprivation and genocide in Kurdistan over several decades, in contrast with today's economic boom. "The economy today is moving on and moving forward." He said Kurdistan has a major stake in a successful and strong Iraq and that Kurdistan is exercising its constitutional right to develop its resources. "I dare dream that from the devastation and destruction of the genocide we can have a future that's democratic and prosperous."
The prime minister said the KRG and the federal government had agreed that the 2007 draft hydrocarbons law would be used as the basis for discussions on a federal law. He added that it was agreed a draft would be presented to the parliament by the year's end.

Kurdistan's oil and gas sector has taken off in the past few years from a standing start, which has put Kurdistan on the global energy map. The KRG has signed 45 contracts with companies from 17 countries. In 2012, Kurdistan will export 175,000 barrels of oil a day. It will provide electricity to neighbouring provinces in the near future thanks to several gas-powered energy plants.

Dr Hawrami told the conference that the KRG would continue publishing its contracts for the sake of transparency and said he hoped this would become a model for the region.

Dr Hawrami also spoke about pipelines, gas and the important role of Turkey as an energy transportation route to Europe with the possibility of Kurdistan joining the Nabucco pipeline or using an LNG terminal in Ceyhan in Turkey to export gas to Europe. He said the KRG has a target of 1million barrels a day of oil exports via the Kirkuk-Ceyhan pipeline and to increase Kurdistan's oil refining capacity to 300,000 barrels a day.

The conference also heard from Dr Cimen who spoke about Turkey's position in the energy world. Turkey's Genel Enerji was among the first oil companies to enter Kurdistan and is now merging with Vallares, former BP chief executive Tony Hayward's company.

British MP Nadhim Zahawi delivered a message of congratulations to the conference from Britain's energy minister Charles Hendry.

The conference heard discussions on oil and gas services, finance, pipeline and infrastructure plans, the need to hire local labour, projects to support local communities, and plans to export electricity.


http://www.krg.org/articles/detail.asp?rnr=223&lngnr=12&smap=02010100&anr=42270

 

Peyamner Irbil - 17 November to November (PNA): The government in the Kurdistan region of Iraq, Wednesday, the UAE's Dana Gas is negotiating with a view to extracting natural gas to provide a modern plant for the production of electric power in the province of Dohuk.



The Ministry of Electricity Kurdistan said in a statement that "the head of the delegation Dana Gas Jafar, disclosed to the Minister of Electricity Yasin Abu Bakr, they are negotiating now with the Ministry of Natural Resources in order to gain approval of the project to provide natural gas to power plant Dohuk modern capacity of 500 MW, similar to plants Erbil and Sulaymaniyah, which together produce 1750 MW together, "while the revenue statement omitted details of the location of gas extraction.

It is said that Dana Gas holds the years since the extraction of gas from the fields of Khurmur to the east of the province of Kirkuk and transferred to two power plants and one in the west of Sulaymaniyah Chamchamal and again to the south of Arbil.

And includes areas south of Dohuk reserves of gas and oil, the UAE believes that the company holds the extraction of gas from that area and moved the station's electrical company has modern Iraqi and Jordanian setting up this run under investment projects in the region.

The company Dana Gas has invested since 2007 a total of $ 900 million in gas projects in Kurdistan, and is planning more projects to the most prominent industrial city gas.


http://www.peyamner.com/details.aspx?l=2&id=256210

 

PUKmedia for Reuters 17/11/2011 19:51:16

Rose Nuri Shaways Deputy Federal Prime Minister said on Thursday that Exxon Mobil will retain a large lucrative deal with Baghdad, easing a severe reaction to a former Iraqi officials, the agreement between the mining company and the Kurdistan Region.

The Exxon deal with the Kurdistan Region have raised threats from Baghdad to cancel the company's contract to develop the West Qurna field.

Shaways said "I do not think that the central government in Iraq will cancel any contracts signed or contracts already in place and in particular the contract with Exxon Mobil."

He added: "In general, a majority wants to resolve this problem, but of course there are other points of view and this is normal with respect to any subject."

And Exxon entered into a multi-billion dollar contract with the Federal Ministry of Oil to develop the first phase of West Qurna oil field in the south, with estimated reserves of 8.7 billion barrels, in one of several huge contracts Iraq hopes to help rebuild the oil sector.

Shaways said that Baghdad familiar with the negotiations between Exxon and Mobil Exploration in Arbil on the sites and gave initial support for the idea.

"Of course informed the Government of the Territory of the Federal Government through the official channels of communication, adding that Baghdad was aware of."

"The verbal feedback from some of the authorities within the Federal Government gave positive signals on the basis that any investment will achieve the benefit of the whole country."

But Shaways said he believed that the dispute over a deal Exxon Mobil may speed approval of the oil law, adding that he Cisrah, expressing his hope that the law be referred to the Federal House of Representatives before the end of the year and then next step will be easy.

And "If approved, it will solve all these problems is outstanding. Investment in any part of Iraq will help in the development of Iraq."

http://pukmedia.co.uk/2009-10-23-12-01-47/22883-2011-11-17-16-51-34

 

An official from KRG announced that few officials in Baghdad oppose KRG's oil deals and its oil exports .

The official who asked to stayed unnamed told Al Sharqel Awsat : KRG is attempting to rise its oil outputs to 1 million bpd by 2015.

He says baghdad tries to create obstacles for KRG's progress through Sharistani who is not even an oil Ministry.

The official also reveals Baghdad has tries pressuring the big oil companies not to enter Kurdistan but it has failed with this policy.



http://www.nrttv.com/K_Direje.aspx?Jimare=10035

 

By April Yee - The National UAE



Dubai, UAE- November 20, 2011 Majid Jafar, Chief Executive, Crescent Petroleum gestures during the interview in Dubai. Photo: Satish Kumar/The National.


November 23, 2011

The Sharjah-led consortium that operates the only commercial gasfields in Iraqi Kurdistan plans to expand its production as domestic needs grow and the semi-autonomous region considers exports to Europe.

Crescent Petroleum, a family-controlled company, and Dana Gas, its publicly traded sister company, are leading production at the Kormor and Chemchemal gasfields and have invested US$920 million (Dh3.37 billion) into gas production and processing facilities that now provide enough fuel for 22 hours a day of electricity, a wealth of power compared with the four hours or so a day available in the rest of Iraq.

The companies are planning a second phase to increase gas production and push Kurdistan towards becoming an exporter to international markets.

"We're in discussions with the Kurdistan Regional Government about the next phase of expansion and continual investment," said Majid Jafar, the chief executive of Crescent Petroleum and a Dana Gas board member. "We can move quickly, and the Kurdistan region is developing fast."

Although an international scramble for oil riches in Kurdistan has grabbed the spotlight, the regional government estimates as much as 200 trillion cubic feet of natural gas reserves could lie under the surface of this undeveloped region in the north of Iraq. Kurdistan is reserving tranches there for its domestic power needs and yet-to-be-built power plants in Kirkuk, Mosul and Salahuddin in central Iraq - but after that, it wants to begin exporting to Europe, or beyond.

"We need to monetise the value of this gas," Ashti Hawrami, Kurdistan's oil minister, told energy executives in Erbil last week.

Plans include exporting the gas via the Nabucco pipeline linking Turkey with Austria, or a pipeline connecting Kurdistan to the Turkish port of Ceyhan, where it would be converted to a liquid that could be exported by tanker.

The consortium, which includes Hungary's MOL and Austria's OMV as minority investors with 10 per cent each, processes about 300 million cu ft of gas a day. Mr Jafar is optimistic about increasing that and said oil explorers in the region had approached his company about managing the gas they find in the course of crude production, although none are yet at commercial volumes. He declined to put a number to the consortium's ultimate targets.

Companies from the region have a unique role to play in the Iraqi energy sector, according to Mr Jafar.

"Because of the risk profile in Iraq, now we really feel that investors from the region - and there's a lot of capital in the region - are not only welcomed, but are better able to manage the risks than western companies, who see a lot more risk potentially," he said.

"We're seeing that already in the Kurdistan region and in other parts of Iraq the investment ties within the region, particularly the GCC, are happening much quicker than [with] big western conglomerates."

Copyright ©, respective author or news agency, thenational.ae

 

By Gary Kent




The recent inaugural Oil and Gas conference in Erbil, the capital of the largely autonomous Kurdistan region in Iraq, attracted 600 people including senior politicians and executives from across the world in what is likely to be a regular feature of the global energy scene.

The prestigious gathering conveyed growing business and political confidence in a place that was once a byword for poverty and oppression and an economic backwater.

The conference was set alight by news that the world’s biggest oil company ExxonMobil had decided to settle in the region.

It shouldn’t be surprising that this behemoth would want to do
Gary Kent is Director of Labour Friends of Iraq.
business in Kurdistan. After all, it is now widely seen as the final frontier for onshore oil and gas. Its energy reserves had been deliberately neglected by Saddam and it is only since what most people here call liberation in 2003 that the scale of its natural assets has been mapped.

The scale of often easily recoverable assets has come as a pleasant surprise. Experts estimate that it has reserves of 45 billion barrels of oil which could make it the world’s fourth largest producer and possibly as significant as Libya.

There are major gas reserves – possibly a century’s worth. Such energy assets make Kurdistan a potentially powerful strategic partner in ensuring energy supplies to Europe via Turkey with which the region’s relations have substantially improved, although there is much work to do in lifting the position of Kurds in Turkey.

And the Kurdistan region also has untapped potential in minerals such as phosphates, iron, copper and marble. Then there is agriculture and tourism in what is the safest part of Iraq, where there have been no attacks since 2007 and where there have been 200 terror-related deaths since 2003 compared to about 120,000 in the rest of Iraq in the same period.

Yet the Exxon decision is hugely controversial in Baghdad. The federal government maintains that the Kurds don’t have the legal right to conclude their own contracts without permission. The Kurds argue that their regulatory regime is consistent with the Iraqi constitution agreed by a popular vote in 2005.

However, Baghdad blacklists oil companies that operate in Kurdistan from the larger scale of work in the south. Both sides accept the need for external investment and expertise but differ on the terms.

The Kurds have been highly successful in concluding advantageous deals with over 40 smaller oil companies from 17 countries, including smaller British ones although they have recently been joined by the former BP Executive Tony Hayward, who was at the conference and whose Vallares company has now merged with a Turkish company.

The Kurdish minister for natural resources, Ashti Hawrami, himself a former oil man with North Sea experience, has also done very well in encouraging corporate social responsibility to build schools and other infrastructure.
The Exxon entree may encourage other oil majors. An open question is whether BP would emulate Exxon.

Groups such as the APPG on Kurdistan have long argued that the Kurdistan region is open for business and could be a gateway to the rest of Iraq as its security improves. My initial visit to Kurdistan five years ago was to meet trade unionists. They urged British investment with a Communist leader asking to ‘borrow your bourgeoisie’ as they didn’t have one. The ‘bourgeoisie’ is finally getting the point with a variety of small British companies going to Kurdistan to see for themselves. APPG Co-chair Meg Munn MP formally opened the recent large trade fair in Erbil together with the president and prime minister of the Kurdistan region.

But the Exxon dispute is not merely a technical one about contracts, but is potentially about the future of Iraq as currently constituted.

The Kurds did not voluntarily join Iraq nearly a century ago and were denied statehood with Kurds dispersed across Turkey, Iraq, Iran and Syria. Successive Iraqi regimes repressed the Kurds who are often looked down on by Arab chauvinists. This led to decades of genocidal acts most notably at Halabja where 5,000 people were killed by weapons of mass destruction on one day in 1988. Some 180,000 people were killed overall and thousands of villages were destroyed. Farmers were shot on sight, wells were poisoned and people forced into urban concentration camps as part of a systematic effort to eliminate the Kurds.

The Iraqi Kurds say they have exercised their right to self determination by opting to stay in Iraq but on condition that it is democratic and federal with substantial autonomy for the region. If Baghdad reverts to centralised dictatorship all bets are off the table.

They have refused to wait for Baghdad to get its act together. The Kurdistan prime minister, Barham Salih, who himself studied in exile at Cardiff and Liverpool, told the conference that the Kurds will never again be held hostage to the whims of bureaucrats in Baghdad. He pointed out that if they had conformed to the sluggish Baghdad timetable there would still be just two hours of electricity a day compared to the current twenty in the region.
This is the backdrop to the long running dispute over contracts and the need for an overarching hydrocarbons law.

The Exxon decision could force the pace and change the balance in favour of the Kurds and may have Baghdad over a barrel so to speak. Exxon’s operations in the south are critical to Baghdad’s plans to get the oil flowing and finance essential services such as electricity supply which is about four hours a day. Baghdad could expel Exxon but probably after months of legal wrangling. It seems highly improbable that the world’s biggest oil company would have walked into this blindly. The company is huge and its wealth dwarfs that of Iraq. The best hope is that the two energy ministers ignore the dinosaurs and agree a pan-Iraq law that benefits both sides.

It would be better that such an accommodation were reached soon as the impending withdrawal of American troops could destabilise Iraq. It would also be in line with the agreements brokered by the Kurdish president which facilitated the formation of a coalition government in Baghdad after nearly a year of stasis.

An accord would then provide the needed stability for the country’s vast natural resources to be exploited and to accelerate their use of the revenues to increase basic services and further isolate extremists.

Saddam used some of the country’s vast natural wealth to benefit his narrow support base, repress everyone else and finance an aggressive foreign policy.
Energy assets can now finance the good life without succumbing to the soulless opulence and a seething underclass of other countries in the Middle East. There have been huge advances for ordinary Iraqi Kurds with average per capita income increasing from $375 to $5,500 in the last decade and there is an annual growth rate of 12 per cent. The region could soon become a net contributor to the Iraqi economy.

On my seven visits since 2006 I have seen a constant process of change with high-end hotels and malls but there is still much to do to provide more homes, hospitals, waste water and other facilities.

In common with other Middle East countries, half the population is under 25. Political leaders and friends abroad can highlight tremendous achievements by the Kurdish liberation movement but for most people this is a struggle conducted by their grandfathers and doesn’t entirely answer their needs now.

The Kurdish leadership has acquired increasing legitimacy by voluntarily embracing democracy and seeking to make the transition from a top-down and state dominated economy to a more open one with independent institutions and a larger private sector.

They actively seek external advice which makes them more vulnerable to criticism over issues such as rights for women, the media, prisons and the like. The need for change is acknowledged. The region is also lucky in having an opposition which can clarify issues. External political and policy knowledge-sharing can help develop a more competent political class. Remember that until recently the priority of politicians has been survival in a massively hostile environment.

The Kurds have a deep affection for the British with whom they have a chequered history but one that has been compensated for by the actions of John Major and Tony Blair. Our education standards, the quality of our goods and our politics are admired. After some initial nervousness about dealing with Kurdistan British ministers and companies now see that they can play a major and positive role.

There are also growing cultural links. The inaugural British Film Festival in Erbil, although the city has no cinema as yet, opens this week. It has been organised by the British consulate-general, Bankside Films and the Kurdistan regional government. Films on show include those with strong female role models (The Queen, Pride and Prejudice, Made in Dagenham), tackle social stereotypes (Billy Elliot) or discuss the Holocaust (The Boy in Striped Pajamas).

The UK’s National Film and Television School is organising workshops for young Kurdish filmmakers wanting to tell their stories which can help develop the nascent local filmmaking community and encourage films about the blossoming of the Kurdistan region after decades of dictatorship, genocide and isolation.



Copyright ©, respective author or news agency, progressonline.org.uk

 

[ame="http://www.youtube.com/watch?v=4_SF0V2TbjA&NR=1"]CNN TV - Iraq Fuming Over Exxon-Kurdistan Deal - YouTube[/ame]

 

This is abit off topic but Iraq is another country drawn up by imperialist european powers and ignores the realities on the ground. there should be at least 2, maybe 3 separate states in Iraq. The Kurds should have their own nation in the North that would be the first piece of the overall Kurdistan national puzzle. The Sunni in the central and western parts of Iraq could form a 2nd nation, perhaps calling it "Mesopotamia" or "Assyria" even... something to that effect. And in the South you would have the Shia state that could either remain its own country or, seeing as how they are politically and religiously close to Iran, just be annexed by the Persians, tho that could create problems in the future. So while there is at least one major distinction in Iraq, Kurds, the rest of the country have trouble getting together, not because of ethnic or national differences but because, again, of religious differences. There is already a movement in iraq where provinces are declaring autonomy against the central governemnt in Baghdad so this idea isn't that far fetched.

 

well said dear , it is happening already Kurds have formed their own state but they havent declared it . one main reason is there is still areas sliced off which belong to kurdistan .

Sunni region are now moving towards their own state , and i also support assyrian region or state in Nineveh plain .

 

* Kurdish leader says Iraqi PM had no objection

* Deal is constitutional, Barzani says

* Baghdad has threatened sanctions over Exxon pact

By Rania El Gamal

ARBIL, Iraq, Nov 30 (Reuters) - Iraq's semi-autonomous Kurdish region will go forward with its exploration deal with U.S. oil major Exxon Mobil despite objections by the central government in Baghdad, the Kurdish president said on Wednesday.

Masoud Barzani, president of the Kurdistan Regional Government, said Iraqi Prime Minister Nuri al-Maliki was told of the deal prior to its signing and had no objection, and called Baghdad's opposition unconstitutional.

"The contract is not unconstitutional. Yes, we have signed with Exxon Mobil according to the constitution ... the objection that we heard from some officials is what is unconstitutional," he told Reuters in an interview.

"We are committed to the deal and we will execute it without caring about what some officials in Baghdad say, which is against the constitution."

The U.S. oil giant became the first major to move into the northern Kurdish region in mid-October when it signed with the KRG for six exploration blocks.

The Iraqi oil ministry said the deal was illegal and could result in termination of Exxon's contract to develop the major West Qurna Phase One oilfield in the south. Officials later said they were considering sanctions.

Exxon has not commented publicly on the agreement and Iraqi oil officials say the company has not responded to their requests for an explanation.

The deal heightened tensions between Baghdad and Arbil, which have long-running disputes over oil and land, as U.S. troops pull out of Iraq. Iraq territories disputed by the Kurds and the Arab-led government in Baghdad are considered a potential flashpoint for future conflict in Iraq.

Despite the silence from Exxon, the U.S. State Department commented on the deal, saying it hoped Iraq and Exxon could resolve the dispute in a way that would not undercut the future development of Iraqi oil resources.

MALIKI INFORMED, HAD NO OBJECTION

Interviewed at his sprawling hilltop headquarters outside the Kurdish capital, Arbil, Barzani said the Exxon deal would benefit all of Iraq, not just the Kurdish region. He said he was surprised at Baghdad's recent warning against the deal.

"It is strange really, and has no meaning. For us, it doesn't mean anything," he said.

"At the first step, I sent a message to the prime minister and informed him of all the details. The answer I got back was that there was no objection... Before the signing, yes."

The Kurdish president criticised Iraq's oil policy and said Baghdad has been dragging its feet in approving a hydrocarbon draft law that was agreed between the two governments in 2007.

"The oil policy in Iraq is a failed policy, I say it clearly. Ask the Iraqi people where are the oil refineries? ... How many hours of electricity are available for the Iraqi citizen in the center and south? And Iraq lives on a sea of oil," he said.

"If it is not a failed policy, then what is the reason?" he asked.

Barzani repeated a long-held KRG position that the oil and gas contracts signed by the Kurdish government are constitutional and the region will not give away such rights in order to solve its disputes with Baghdad.

He also said under a 2007 deal both the regional and central governments agreed to continue signing contracts with oil companies until the long-awaited hydrocarbons law was approved.

Maliki and Kurdish Prime Minister Barham Salih agreed in a meeting in October to present an oil law to parliament by year-end and said it would be the draft law approved by the political blocs in 2007, or a version of it with agreed amendments.

"We are exercising the right that was given to us by the constitution and no official in Baghdad has the right to take this away from us," Barzani said. (Editing by Jim Loney)


http://af.reuters.com/article/energyOilNews/idAFL5E7MU61820111130?pageNumber=3&virtualBrandChannel=0

 

PUKmedia 03-12-2011 14:10:00



Head of Foreign Affairs Department in Kurdistan Regional Government Falah Mustafa , in a press statement said that the Iraqi Federal Permanent Constitution gives his Government the right to sign oil contracts with foreign companies .

Mustafa , stressed that Kurdistan Regional Government , will not relinquish this rights.

The KRG pays great heed to develop the industry and natural resources sector in order to serve Kurdistan Region and Iraq interests , he clarified.

http://www.pukmedia.com/english/ind...fa-says-&catid=29:kurdistan-region&Itemid=385

 

[ame="http://www.youtube.com/watch?v=46W3Sz-M6U0&feature=channel_video_title"]Oil returning Kurdistan to former glory CNN - YouTube[/ame]

 

BAGHDAD, — Iraq's autonomous Kurdistan region must decide whether it wishes to remain part of the country or form its own independent state, Baghdad's oil minister said in an interview published Friday.

Abdelkarim al-Luaybi's strong comments come as Iraq aims to ramp up oil production despite not having passed a hydrocarbons law to regulate the distribution of lucrative revenues from crude sales.

"It's up to the Kurdistan region to decide whether it has made a strategic decision to stay part of Iraq or it has made up its mind to establish its independent state," Luaybi told the iraqoilforum.com
Iraqi Oil Minister Abdelkarim al-Luaybi. Photo: AFP/ Ahmad al-Rubaye.
website run by energy analyst Ruba Husari. "It is not acceptable ... that the Kurds sign contracts that award every single inch of the Kurdistan region of Iraq, without the participation of the inhabitants of the 15 other provinces in the decision," he said.

The Kurdistan region has signed around 40 contracts with foreign energy firms on a production-sharing basis without seeking the express approval of the central government's oil ministry.

The federal oil ministry, meanwhile, has instead awarded energy contracts to international companies on the basis of a per-barrel service fee. It has also refused to sign deals with any firm that has agreed a contract with Kurdistan.

That refusal was put in the spotlight in October, when Kurdistan inked a deal with ExxonMobil to explore six areas of the region. The US firm had previously signed a contract with Baghdad to ramp up production at the West Qurna-1 field,www.ekurd.net Iraq's second-biggest.

Iraq has said the oil giant must choose between the two contracts, a demand Luaybi reiterated in the iraqoilforum.com interview.

"They have to choose either to continue work here, which we have no issue with, or to work in the Kurdistan region," he said.

He added: "They are required to decide on a final position. Our position is clear. No company, whether Exxon or any other, would be allowed to breach our constitution and current laws and directives."

"If it decides to pull out, it will be the biggest loser. The entire Kurdistan region oil is nothing compared to WQ (West-Qurna) oil field."

Iraq's draft 2012 budget estimates oil exports of 2.6 million barrels per day (bpd), including 175,000 bpd from the Kurdistan region. The region receives a 17 percent share of the national budget, as part of a deal with Baghdad.

Copyright ©, respective author or news agency, AFP
http://www.ekurd.net/mismas/articles/misc2011/12/invest786.htm

 

Today , the first international exhibition of oil and gas in the Kurdish capital Erbil opened its doors.

The director of the gallery Erbil Ahmed Abdullah told all today, "the exhibition opened today at eleven am, 85 companies with the participation of Arab and international and local specialists in the field of oil and gas."

He added that "the countries participating in the exhibition are all from the United States, France, Spain, Japan, Canada, Russia, Switzerland, Singapore, Iran, Turkey, Egypt and the UAE."

He said that "23 local companies will participate in this exhibition, which is the first of its kind in the country."


http://alliraqnews.com/index.php?op...-56-57&catid=37:2011-04-08-17-25-57&Itemid=56