Kurdistan Oil & Gas Development

[brendar]

WASHINGTON, Aug. 21 (UPI) -- Washington has advised U.S. energy companies working in Iraq that signing deals without Baghdad's approval is a risky move, a government spokeswoman said.

The central government in Iraq warned last week it was considering cutting ties with foreign energy companies signing unilateral deals with the semiautonomous Kurdistan Regional Government, which controls oil-rich northern Iraq.

Baghdad blacklisted some international oil companies that have engaged the KRG.

Victoria Nuland, a spokeswoman for the U.S. State Department, said U.S. energy companies working in Iraq were advised of the political situation.

"We continue to tell them that signing contracts for oil exploration or production with any region of Iraq without approval from the federal Iraqi authorities exposes them to potential legal risk," she said.

Iraq lacks federal legislation governing the oil sector. Nuland said risks would remain until a comprehensive political decision on oil is made.

The KRG in April halted oil exports because it said Baghdad wasn't paying energy companies working in the Kurdish north. Exports were resumed in early August as a "goodwill initiative" that the Kurdish government said should encourage Baghdad to make good on "all the outstanding payments due."



http://www.upi.com/Business_News/Energy ... t=hs&or=er

http://english.alarabiya.net/articles/2 ... 33378.html

[alan131210]

Ashti: Reports of US warning to oil giants in Kurdistan are "baseless"

 
ERBIL, Aug.21 (AKnews)- The US government has not demanded the oil companies not to invest in the Kurdistan Region of Iraq, said Kurdistan Natural Resourced Minister.

Ashti Hawrami made the remarks in response to some media reports which quoted the US State Department Spokesperson Victoria Nuland saying Washington has warned the oil companies not to sign any oil deals with Kurdistan without Baghdad's approval or Baghdad may take legal action against them.

The US Exxon Mobil and Chevron companies as well as the French Total are the major oil giants operating in Kurdistan oil fields and have shares in fields across the Iraqi provinces. 

Hawrami described the media reports quoting Nuland  "baseless ….These are not but propaganda… by some people who yearn for the US to make such a word.

"The US has never made such a statement and has not told us, as the [Kurdistan] Regional Government, anything." 

The minister said the region is ready to export oil after the Eid al-Fitr, the deadline for Baghdad to pay the suspended dues of foreign oil companies.

He warned if Baghdad fails again to pay the dues "the region will make its own decision."

Under a political agreement Baghdad has undertaken to reimburse the investing oil companies in the region. Suspending the dues of such companies for more than 10 months pushed the Kurdistan Ministry of Natural Resources suspend all its oil exports (175,000 barrels per day) early May.

[alan131210]

ERBIL, August 22 (AKnews) – French oil giant Total won a 20 percent stake in an oil exploration block in the Kurdistan Region from Canada's ShaMaran Petroleum Corp despite threats and warnings from Baghdad.
The company signed the contract for $48 million in cash, plus a reimbursement for costs incurred from April 1 until the closing date, reported MarketWatch.

An anonymous source said: "After all, Exxon has been threatened, but nothing has happened so far."

Total has interests in Halfaya bloc in Iraq too, and hopes its move to the Kurdistan Region does not anger Baghdad more.

Iraqi spokesperson Faisal Abdullah said on August 1 that the government would blacklist Total after it signed oil contracts with the Kurdistan Region.

The spokesperson for the deputy prime minister for energy affairs said Iraq would penalize companies signing contracts with the region without prior approval from the central government, reported Reuters.

Total announced earlier that it signed a contract to explore oil in the region. This angered the Iraqi government. Total explained that it won a 35-percent share in two blocks in the region.

The Iraqi government earlier blacklisted US oil outfit Chevron Corp and barred it from signing deals with the Iraqi Ministry of Oil.

The decision was made after the corporation announced on July 19 it purchased 80 percent of stakes in Sarta and Rovi blocks in the Iraqi Kurdistan Region from India's Reliance Industries Ltd. Austria's OMV AG holds the remaining 20 percent.

An official statement from Iraq’s government said the corporation, the second largest US oil company after Exxon Mobil, signed the deal without the approval of the Oil Ministry.

[alan131210]

August 22, 2012

LONDON,— Heritage Oil Plc (HOIL.L) will sell part of a gas block and borrow money from Genel Energy Plc (GENL.L) to raise $450 million, easing concerns about how it will fund oilfield purchases in Nigeria.

Heritage Oil shares jumped 18 percent after the company said it will sell a 26 percent stake in Miran Block in Iraq's autonomous Kurdistan region to Genel and will take a $294 million loan from the company.

The cash will partly fund Heritage Oil's acquisition of a stake in Nigeria's OML 30 oilfield assets announced last month.

"Miran sale price is attractive, but the cash is more welcome," RBC Capital Markets' Al Stanton said.

Heritage Oil earlier planned to fund a portion of the OML 30 deal through a rights issue.

"There is no need to proceed with the rights (issue) and any capital raising is dropped," Heritage Oil Chief Financial Officer Paul Atherton told Reuters on Tuesday.

The company will sell the Miran Block stake and an interest in a related joint operating agreement for $156 million, which would increase Genel's holding in the block to 51 percent.

Heritage Oil can repay the loan by transferring ownership of its unit Heritage Energy Middle East Ltd, which currently operates the Miran Block, to Genel.

"After we've completed the acquisition of OML 30 ... either party has the right to exercise this option, and we would expect to complete the same, by way of cancelling the loan in exchange for the remaining rights in Miran," Atherton said.

Heritage Oil, which also operates in Tanzania and Russia, will have no presence in Kurdistan after exiting Miran Block.

Conceptual engineering design studies have focused on the potential for early production of between 80 million and 180 million standard cubic feet per day (MMscfd) at Miran for local markets beginning in 2013,www.ekurd.net according to Heritage Oil's website.

This will be followed by an appraisal and full development of between 560 and 750 MMscfd in 2015 for gas export.

Genel's primary assets are oil and gas licenses in Kurdistan and has an interest in six production sharing contracts with the Kurdistan Regional Government.

"We aim to build a material gas business alongside our existing oil business in the medium term," Genel Energy Chief Executive Tony Hayward said.

Heritage Oil shares were up nearly 18 percent at 197.98 pence on the London Stock Exchange at 1353 GMT on Tuesday. They rose 17 percent to C$3.05 on the Toronto Stock Exchange.

Genel's stock was down marginally on the London Stock Exchange.

Reuters

[alan131210]

Kurdistan Oil & Gas pipelines totally bypassing iraq, they are dotted in blue and red

full image
http://img254.imageshack.us/img254/2510/oilrush0000.jpg

[hevalo27]

the new pipelines will go throgh fishkabur, right?
and the actuall kirkuk-ceyhan pipeline also ?

no wonder this pitifully maliki tried to occupie the area, he wanted to get controle about kurdish oil, but he failed, next year kurdistan will be economical independent

[Cewlik]

we will leave baba field to iraq bcoz if we dont then iraq will starve to death , they can have it well no1 dried up a year ago iraq has been pumping/stealing its oil for 80 years now .

baba field is this tiny strip that is given to iraq

What? I think Kirkuks oil field was under Kurdish controle, is that not true?

[alan131210]

Hevalo27

Yes that is Exactly why milky psychopath wanted to invade this parts of Kurdistan in zaxo bcoz the newly kurdish oil and gas pipelines will go thru Fishkhabur the sick bastard he and his team are, thanks to peshmerga who failed them.

Cewlik

Kirkuk oil field is a giant field stretching 100 kms long and 20 km wide , it's consists of three major structures, baba,Avana and Khurmala. The last two ARE in kurdistan Erbil province even though it's called Kirkuk oil field but not all of it lies in Kirkuk. Iraq has been stealing oil from baba field since oil was discovered there 90 years ago, we are In total control and using the other two structures well only Khurmala is developed for now for local use they will be used for local supplies prob for ever, there are branches connecting one of them to khabat refinery and a gas pipeline that is connected to power stations in Erbil and Suli. iraq will prob keep its baba field as says in the constitution article 111 "all existing fields will be under central, but newly discovered fields and pipeline will be under the regions control its found and developed at".

Baba field is very old it has several wells one dried up last year so I think in several years the rest will dry up. Then the oil branch connecting baba fields to Iraq-ceyhan port will be useless and might be disconnected or left to be a meusem.

What is important is Khurmala and Avana which hold huge amount of unannounced reserves, Khurmala is now supplying entire SK with local fuel as well as gas to pump the power stations , Avana is not yet given to any company yet I think KRG will keep it for local consumption like Khurmala and both are giant fields I tell you that.

[Cewlik]

Yes I can see it on the map, Kirkuks oil field is in Kirkuk and Erbil Province. So you say the part which is in Kirkuk is under Iraqi control and the part in Erbil is under KRG control, right?

[alan131210]

Yes I can see it on the map, Kirkuks oil field is in Kirkuk and Erbil Province. So you say the part which is in Kirkuk is under Iraqi control and the part in Erbil is under KRG control, right?

Just the middle bit of it is iraqs but the rest all belongs to Kurdistan.

[alan131210]

Arif Teyfur Iraqi parliament deputy PM to shahrstani "why are you silent over Iran stealing Iraqi oil"

[alan131210]

ERBIL, August 25 (AKnews) – The Kurdistan Regional Government's plan of exporting one million barrels of oil per day to Turkey is a game-changer, said oil company Genel Energy’s chief executive Tony Hayward, indicating to an ongoing dispute between Baghdad and Erbil over oil production and export control in the region.

Erbil and Ankara agreed to build an export pipeline, which could be operational next year, to transport one million barrels of oil per day to Turkey.

The Kurdistan Regional Government (KRG) started trucking exports of crude oil to Turkey at the beginning of July despite a long-running dispute between Baghdad and Erbil.

Hayward believes that the entrance of further oil giants to the region will led Baghdad and Erbil to an agreement over who controls the Kurdistan Region's oil fields.

During the last few months, ExxonMobil, Chevron and Total signed contracts with the region to invest in the oil sector and neglected Baghdad's threats and warnings, reported the Financial Times.

Exxon Mobil signed six oil contracts last year with Kurdistan. The contracts led to strong opposition from Baghdad, which says Kurdistan is not authorized to sign contracts for its oil.

The Iraqi government later threatened to blacklist oil giants if they continue their contracts with the KRG.

Hayward stressed: "Such developments reinforced the KRG’s position, strengthened its hand in negotiations with Baghdad and were a strong indication that there would be an agreement between the two sides.

"Kurdistan’s oil will one day flow freely. I don’t know anywhere in the world where you have one million barrels a day in the pipeline and it doesn’t find its way to market.

"This would come either through a bilateral deal between the KRG and Turkey, or a peace agreement between the Kurdish authorities and Baghdad."

[alan131210]

http://m.youtube.com/index?desktop_uri=%2F&gl=AU#/watch?v=9DzNgRnJpdU&hl=en&fs=1&rel=0&hd=1   

[alan131210]

gorran report on the oil contracts, it is in kurdish so our enemies cant understand it that is why i post it, you make your own judgements and calculations i have made mine.

http://www.youtube.com/watch?v=k9ma34yCOc8&feature=g-all-u&hl=en&fs=1&rel=0&hd=1   

My views on their report

1. You fail to understand Kurdistan does not have access to sea to avoid Turkish and Iraqi influence those countries you have showed DO have access to sea.
2. The revenues are higher for the IOCS yes but that's iraqs fault not the law, they started all this with their "blacklisting" childish games.

[alan131210]

they are starting to put their acts together

SALAHADDIN, Aug. 25 (AKnews) - The Gorran Movement stated Saturday that the oil issue has become a growing problem between Baghdad and Erbil and must be resolved through dialogue, emphasizing the right of the region to get 17 percent of the overall budget.

The movement, led by Nawshirwan Mustafa, expressed its support for holding a census to prove the right of the region in addition to the importance of the census for the whole country.

The Kurdish Blocs Coalition (KBC) last Thursday called for holding a census in the country to determine the percentage of the population of the Kurdistan Region and the rest of the provinces after the Deputy Prime Minister for Energy Affairs Hussein al-Shahristani on August 18 called on the Council of Ministers and the Ministry of Planning to approve the region's share of the budget as 13 percent instead of 17%.

Foreign relations official in the Gorran Movement Mohammad Tawfiq said: "The census will prove the region's right to its share of the overall budget."

The relations between Erbil and Baghdad are still tense due to disputes about many issues, including oil contracts, the issue of disputed areas as well as the Peshmarga budget.