Kurdistan Oil & Gas Development

[alan131210]

By Ahmed Rasheed

BAGHDAD (Reuters) - Exxon Mobil has officially informed Iraq's government it wants to pull out of a $50 billion (31.3 billion pounds) oil project, telling Baghdad in a letter it has started talks with other oil companies to sell its stake, senior Iraqi officials said.

Exxon's decision to quit the West Qurna-1 oilfield will exacerbate tensions between Baghdad and the autonomous Iraqi Kurdistan region, where Exxon has signed oil deals seen as more lucrative but dismissed by the central government as illegal.

Kurdistan has upset Baghdad by signing deals with foreign companies including Exxon, Chevron and Total. Kurdish officials say that right is enshrined in the constitution.

But Baghdad says only the central government can control oil policy.

Iraq's cabinet also said on Wednesday it was expelling Turkey's state-owned TPAO from its exploration block 9 oilfield but denied that the measure was prompted by any proposed move by the Turkish company into Kurdistan.

The withdrawal of Exxon from a key project in Iraq's south, and doubts about who can replace the U.S. giant also raise questions about the country's plans to increase crude production to 5-6 million barrels per day from 3.4 million bpd by 2015.

"Exxon has stated in its letter that it has started discussions with some international oil companies to sell its stake," Abdul-Mahdy al-Ameedi, director of Iraq's contracts directorate, told reporters.

Baghdad will reply to the letter by Sunday, another oil official said. But it is still unclear who could replace Exxon in the huge oilfield, which pumps around 400,000 barrels per day of crude, with minority partner Royal Dutch Shell.

Some industry sources have said Baghdad is keen to replace Exxon with companies from Russia or China as a way to hit back at major Western oil majors. But it was unclear which companies would have the financial heft to follow Exxon.

Russia's LUKOIL and Gazprom Neft are already working in Iraq. LUKOIL, which already runs a project to develop West Qurna-2, has said that it lacks the resources to take on a project like West Qurna-1 for the moment.

Exxon is now at the heart of a long-running dispute over oil reserves and territory between the Arab-led central government and ethnic Kurds, who have run their own regional administration in northern Iraq since 1991.

EXPULSION

Iraq's cabinet on Wednesday said it had decided to expel Turkey's TPAO from Block 9, asking Kuwait Energy to acquire 70 percent and Dragon Oil PLC 30 percent in the project. TPAO holds a 30 percent stake in the block.

"We respect their decision. If they see such a contract renewal or stake transfer appropriate, we don't mind either," Turkish Energy Minister Taner Yildiz told reporters on Wednesday, in response to Iraq's plan.

Iraqi officials said the decision was not related to possible TPAO deals with Kurdistan.

"The cabinet rejected the approval of Turkey's TPAO as a partner," al-Ameedi said. "Removing TPAO has no connection with Kurdistan deals. We know TPAO has no deals in Kurdistan. But this decision was taken for other reasons."

He refused to give any further details.

The expulsion comes amid tensions between Baghdad and Ankara after Turkey accused Iraqi Prime Minister Nuri al-Maliki of sidelining Sunni Muslims since the onset of a political crisis in Iraq after U.S. troops left in December.

Maliki, a Shi'ite close to Iran, has traded insults with Turkey's Prime Minister Tayyip Erdogan several times, with the Iraqi leader calling Turkey a hostile state and Erdogan accusing Maliki of fanning sectarian tensions.

http://www.reuters.com/article/2012/11/ ... Y420121107

[alan131210]

Kurdistan Regional Government’s Oil Policy, an Interview with Samuel Ciszuk




http://www.ekurd.net/mismas/articles/mi ... te6608.htm

[alan131210]

Gulf Keystone Petroleum has confirmed a new discovery in the Sheik Adi block in the Kurdistan region of northern Iraq.

This follows the completion of a testing programme on the Sheikh Adi-2 well which flowed over 4,000 barrels a day from four Jurassic reservoirs, found in depths of between 1,420 and 1,700 metres.

Sheikh Adi is immediately west of GKP’s massive Shaikan field – which is currently estimated at 12.4 to 15 billion barrels of oil - and the company says the oil recovered from Sheikh Adi-2 is similar to the oil in the same formations at Shaikan.

"We are very pleased with the outcome of the second exploration well on the Sheikh Adi Block, which is in on trend with Shaikan, our major commercial discovery declared earlier this year,” said chairmanTodd Kozel.

“This most recent exploration success points to the significant potential for further growth and future synergies across our world-class acreage in the Kurdistan Region of Iraq."

Gulf Keystone is the operator of the Sheikh Adi block and it owns an 80% stake in the asset, while the Kurdistan Regional Government has a 20% interest.

The company will now submit a discovery report within the next 30 days.

Proactive investors UK

[alan131210]

it makes me happy that ExxonMobil is leaving iraq to pursue its 6 contracts in Kurdistan, lol shahristani shit did not last long and backed fired on him, some members in ssc use to say exxon will never go to kurdistan and will only work in iraq, turned exactly the otherwise around

[alan131210]

New Turkish company in talks over Kurdistan oil-sources

Nov 8 (Reuters) - A new Turkish oil company is in negotiations to acquire several blocks in Kurdistan in a joint venture with at least one foreign oil major and the Kurdistan Regional Government, industry sources said on Thursday.

If successful, talks by the unnamed Turkish entity would be another victory for autonomous Kurdistan after it signed deals with oil majors like Exxon Mobil and Total , defying the central government in Baghdad which says only it has the right to sign contracts for Iraq's oil resources.

"It has been in the works since the start of the year," said one industry source with knowledge of the talks.

Kurdistan says its right to sign oil deals is enshrined in the constitution. But Baghdad says those agreements are illegal and has warned companies they will be blacklisted from Iraq oil opportunities if they sign accords with Kurdistan.

Oil majors see better terms, security and an easier working environment in Kurdistan compared to tougher service contracts and difficulties with red tape, bureaucracy, and infrastructure bottlenecks that hit oil projects In the rest of Iraq.

An adviser to the Kurdistan Regional Government's oil minister declined comment.

While the name of the new Turkish entity was not immediately clear, one source described it as "state-owned" or a "state-sponsored" private entity that is negotiating to join Exxon Mobil's blocks in Kurdistan.

Turkey's state-owned TPAO oil company operates in southern Iraq but does not have any official operations in Kurdistan.

News of the talks came a day after Iraq said Exxon had informed Baghdad of its intention to leave a huge oilfield in the south and officials announced a cabinet decision to reject TPAO as a partner in another oil project.

Iraqi officials said the Turkish decision was not linked to any move by TPAO into the Kurdish region. But one Turkish source said the move appeared political as tensions are high between Baghdad and Ankara.

TPAO has minority stakes in the two small oilfields of Badra and Maysan in the south and is running two gas fields along with Kuwait Energy in the province of Diyala and the southern oil hub of Basra, both near Iraq's borders with Iran.

The expulsion of TPAO comes amid squabbling between Baghdad and Ankara after Turkey accused Iraqi Prime Minister Nuri al-Maliki of sidelining Sunni Muslims in Iraq since the onset of a political crisis after U.S. troops left in December last year.

Maliki, a Shi'ite close to Iran, has traded insults with Turkey's Prime Minister Tayyip Erdogan several times, with the Iraqi leader calling Turkey a hostile state and Erdogan accusing Maliki of fanning sectarian tensions.

Exxon was the first major to sign up with Kurdistan and is now at the heart of a long-running dispute over oil reserves and territory between the Arab-led central government and ethnic Kurds, who have run their own regional administration in KRG since 1991.

[alan131210]

* Ankara and Baghdad at odds over fugitive vice president

* Baghdad and Iraqi Kurdistan also at odds

* Turkey aims to increase involvement in Iraq energy sector

By Evrim Ergin and Ozge Ozbilgin

ISTANBUL/ANKARA, Nov 9 (Reuters) - Turkey is set to reject a company's application to import natural gas from Kurdistan after it failed to produce the necessary purchase agreement in time because of political tensions, energy officials told Reuters.

Turkish company Siyahkalem Ltd had applied to energy markets watchdog EPDK to import gas between 2014-2033, starting with annual volume of 700 million cubic metres and rising to 3.2 bcm.

The firm had to deliver a purchase agreement to the regulator within 90 days after the EPDK initially ruled that its application was acceptable, but it failed to do so, the officials said.

"The political developments being experienced between Turkey and Iraq and between the central Iraqi government and the Kurdish government had an impact in the failure to secure the agreement," one of the Turkish energy officials said.

Turkey has been developing its interest in the Iraqi energy sector, despite tensions with Baghdad after Ankara gave refuge to Iraq's fugitive vice president, Tareq al-Hashemi, who has been sentenced to death by an Iraqi court.

Iraq has also asked Turkey to stop attacks on Kurdish rebel forces sheltering across the border in the Kurdish autonomous region, over which Baghdad has little control and with which Ankara has forged close ties in recent years.

Iraq's cabinet said on Wednesday it was expelling Turkey's state-owned TPAO from its exploration block 9 oilfield for an unspecified reason, although denying it was prompted by any move by the Turkish company into Kurdistan.

According to regulations on obtaining a natural gas import licence in Turkey, companies have to present a contract from the supplier country and company to prove that the resource will be transferred.

Sources close to Siyahkalem said the firm had asked for additional time from the regulator but that the regulator had not responded yet and the process was continuing.

(Writing by Daren Butler and Seda Sezer)

[alan131210]

Nov 9 (Reuters) - Iraq has warned Russia's Gazprom Neft to quit oil deals with the country's autonomous Kurdistan or pull out of its contract for the Badra oilfield, a spokesman for Deputy Prime Minister for Energy Hussain Shahristani said on Friday.

Gazprom Neft, the oil arm of Russian gas export monopoly Gazprom, in August acquired interests in two blocks with the Kurdistan Regional Government (KRG) following moves by rivals like Exxon and Total which angered the central Iraqi government in Baghdad.

"Iraq sent a letter to Gazprom at the end of October asking the company for an official reply, that it should cancel deals signed with KRG or pull out completely from Badra oilfield," Faisal Abdullah said.

Last year Gazprom said it expected to start production at Badra with 15,000 barrels per day in August 2013. The field with 100 million barrels of reserves near Iran's border is operated with Turkey's TPAO, Korea's Kogas and Malaysia's Petronas.

Gazprom Neft Chief Operating Officer Alexander Dyukov declined to comment.

Exxon was the first major to sign oil deals with Kurdistan and is now at the centre of a dispute over oil and territory between the Arab-led central government and ethnic Kurds, who have run their own administration in northern Iraq since 1991. (Reporting by Ahmed Rasheed in Baghdad and Olesya Ashtakhova; writing by Patrick Markey)

[alan131210]

oh yes, South kurdistan giant oil reserves is not just for KRG kurds its for NK,EK and WK , they are us but separated by an artificial border.

[alan131210]

French Oil Expert: Kurdistan Oil Deals are Transparent and Standard Contracts



ERBIL, Kurdistan Region—Last week, Luis Martinez, research director of Sciences Po (Paris Institute of Political Studies) visited the Kurdistan Region as part of a delegation from the university. Luis Martinez presented a seminar arranged by Le Monde Diplomatique entitled “Oil: An Engine to Develop Kurdistan.” An oil expert, Luis Martinez spoke to Rudaw about the Kurdistan Regional Government’s oil contracts, saying that they have been made according to global standards.

Rudaw: As an oil expert, how much do you know about the Kurdistan Region’s oil policy?

Luis Martinez: I don’t have enough information. I believe I have to return to Kurdistan to conduct more research into this. Before I came, out of curiosity, I tried to gather as much information as possible by reading, but as a researcher I didn’t interview people who are experts in this particular field.

From what I understand, Kurdistan has 30 percent of Iraq’s oil reserve. Kurdistan has been able to present a better oil policy than the central government. For example, oil companies can save up to $2 for each barrel if they drill in Kurdistan, and that’s a lot of money for companies.

Rudaw: There is a concern that the Kurdistan Regional Government (KRG) gives most of the profit to the oil companies. Is this a bad thing?

Luis Martinez: The Kurdistan Region has a weak economic policy except for its oil sector policy. The more its oil sector grows, the more the region develops. It is a good idea for the Kurdistan Region to give more profit to the oil companies. Most oil-rich countries can develop their economy considerably if they use what they have correctly.

“The challenge for Kurdish authorities is that, if this policy is not used correctly, it will turn against society,”If I was conducting research in this field, I would mention how the Kurdish authorities control this sector and how they use it for the interests of their people. I would also research how oil revenue could be used to develop the society. The challenge for Kurdish authorities is that, if this policy is not used correctly, it will turn against society.

Rudaw: The KRG has signed almost 40 oil contracts, but the central government and the Kurdish opposition parties complain that the KRG has not been transparent about these contracts. Are the contents of oil contracts usually revealed to the public in other countries?

Luis Martinez: What the KRG has done is not less transparent than other countries. The KRG contracts are normal. The oil companies that have signed oil contracts with the KRG have been legally and carefully advised about the requirements. They have carefully studied Article 112 of the Iraqi constitution that stipulates the KRG is allowed to sign oil contracts with oil companies.

According to the constitution, in cases where new oil fields are found in Kurdistan, the KRG has a right to sign contracts with oil companies directly without consulting the central government. However, politically, the KRG must be very careful because if the central government offers a better deal to these companies, they will turn their back on Kurdistan and go to Baghdad.

Oil companies could take advantage of the disputes between the KRG and the central government in order to decrease the price of oil. For example, Baghdad requires 60 percent of the profits from each barrel, but the KRG only requires 40 percent. If Baghdad changed the deal to 30 percent, then gradually the tax would decrease and companies would take advantage of the situation for their own benefit.

The Kurdistan Region and the central government have enough reserve oil to last for another 100 years, that’s why the oil companies are patient. It would be ideal for Baghdad and the KRG to come to an agreement in order to sustain the high price of oil.

Rudaw: What is the significance of having big oil companies like ExxonMobil and Total in the Kurdistan Region?

Luis Martinez: It means Kurdistan is rich in oil and it is easy for them to get this oil. In addition, they can easily export the oil through Turkey. They also have legal security and there is not a big concern that the government will take over the oil fields. They can also pressure Baghdad this way and make an offer to them. The oil companies would be happy if Baghdad offered them the same deal as the Kurdistan Region. Currently, Baghdad only signs a service contract with oil companies and that is less attractive to companies and has less benefit for them.

Rudaw: Do you think these large oil companies would support the Kurdistan Region if it declared independence?

Luis Martinez: Kurdish authorities could use the existence of these large companies in Kurdistan in a bid for independence, but their goal is not independence for Kurdistan. That would compromise their business because declarations of independence can bring war and instability.

As a historical example, in the past large oil companies tried to make the Biafra region, which is an oil-rich territory in Nigeria, independent because it offered a huge benefit for them. As a result, war broke out and Nigerian troops occupied the region. Since then, oil companies have been dealing with such regions carefully.

“Kurdish authorities could use the existence of these large companies in Kurdistan in a bid for independence,” Rudaw: How can Kurdistan use its oil for the purpose of independence?

Luis Martinez: The past 50 years have shown that federal regions, where there is oil and the people have been oppressed by the central government, are always thinking about independence. But the central government can treat the people of these regions well and grant them their rights, as we have seen in the regions of Alberta in Canada and Alaska in the U.S. Their people are willing to stay under their governments.

Rudaw: The Kurdistan Region is currently exporting 250,000 barrels of oil every day and that is expected to increase to 1 million barrels a day. Is it better for Kurdistan to save its oil or export it while it only gets 17 percent of the income?

Luis Martinez: The amount of oil that the Kurdistan Region is currently exporting is not much. On the contrary, it is little for a region whose only income comes from exporting oil. Any small country can export that much oil. For Kurdistan to become more attractive, it should produce at least 1 million barrels a day.

Even that amount is not very large. Saudi Arabia produces 10 million barrels a day. The U.S. produces 7 million barrels a day and Norway produces 4 million barrels a day. Venezuela and Libya each produce 1.5 million barrels. It would not be bad if Kurdistan increased its oil production to more than 1 million barrels.

Rudaw: In Kurdistan, the other economic sectors have been ignored. For example, the health, education and agriculture sectors have been completely ignored. Would you say Kurdistan has the Dutch Disease?

Luis Martinez: Kurdistan has no industry. Kurdistan’s market is not in danger of collapsing because it only depends on the oil sector and doesn’t have an economic market.

It is true that Kurdistan can face a few problems that other countries had encountered in the past. The first would be if Kurdistan overly depends on oil. Secondly, if there was a lack of control over government spending with the large revenues from oil. An increase in government spending where they are building skyscrapers is dangerous. The final problem is if Kurdistan has a consuming society, where as long as the oil price is high the government does well, but when the oil price declines there is economic crisis.

There are many great models for Kurdistan to follow in order to not face these problems. For example, Norway and Qatar sell oil, but they don’t spend the oil revenue. Norway keeps the oil revenue in a safe while Qatar saves it in a bank and uses its interest for its people. In Norway, the most oil-rich country in Europe, the price of one liter of gas is 2 kroner (US$0.35 or 405 Iraqi dinars). The government wants the people to depend on themselves. In Norway, fishing is very popular. The government encourages its people not to turn their backs on their careers.

It is true that Kurdistan has oil, but it shouldn’t ignore other sectors. Kurdistan must follow a model like Norway. It should save its oil revenue in a safe and teach people to depend on themselves. However, it is not easy for Kurdistan to duplicate Norway’s model because Norway directly sells its oil, but Kurdistan must export its oil through Turkey. Kurdistan must try to form a strategic alliance with Turkey.

“Currently, Kurdistan is handling Baghdad very well. It is not the Kurds who are creating problems; it is Baghdad not treating the Kurds well.”

Rudaw: How should Kurdistan do that?

Luis Martinez: Turkey is at the center of the game; others will become allies of Kurdistan easily. If I were Turkey, I would tell Kurdistan to send its oil to Europe through my country. The closer Kurdistan is to Turkey, the further it is to Baghdad. Kurdistan will need Turkey to protect it.

Maybe in the next several years, Turkey will put political conditions on Kurdistan, saying that since it allowed Kurdistan to export oil through its country, Kurdistan must, in return, force the Kurdistan Workers’ Party (PKK) to leave its soil. If Kurdistan does not meet this condition, then Turkey would stop allowing oil to be sent through the country. In the next five years, there will be economic growth and five-star hotels and nice roads, and it will be difficult for the Kurdistan Region to not be able to export its oil.

Rudaw: If Turkey ends up not being a safe passage for Kurdistan’s oil, what should Kurdistan do?

Luis Martinez: I don’t know what will be best for Kurdistan to do. The economic growth and development will have its own consequences. Sometimes, someone else has to pay the price in order for these things to happen. So, it is important to find a political solution for Turkey’s Kurdish issue.

Rudaw: How should Kurdistan deal with Baghdad when it comes to oil disputes?

Luis Martinez: Currently, Kurdistan is handling Baghdad very well. It is not the Kurds who are creating problems; it is Baghdad not treating the Kurds well. The Kurds can take advantage of Baghdad’s mistakes. Baghdad’s poor treatment can end up benefiting the Kurds.

The oil contracts that have been signed by the Kurdistan Region with the oil companies are standard contracts. This is the way it is done everywhere else anyway. The main issue is not whether Kurdistan can get revenue through its oil contracts; it is how successful Kurdistan can be in using this income for the interests of its people.

[alan131210]

By Isabel Coles

Nov 12 (Reuters) - Abu Dhabi National Energy Co (TAQA) is in advanced talks to buy a stake in an oil block in Kurdistan (KRG) by taking a majority interest in General Exploration Partners (GEP), industry sources said.

GEP is a joint venture between privately-held Aspect Energy, which owns a 66.5 percent interest, with the remainder held by a subsidiary of Canadian group ShaMaran Petroleum.

Industry sources said TAQA was close to purchasing Aspect's share of GEP, but it was not clear whether ShaMaran would sell its interest in the company.

"I do not know that the deal is done yet, but it is all but done," one industry source said on Monday.

An autonomous region since 1991, Kurdistan is often touted as one of the final frontiers for onshore oil exploration and has signed deals with foreign majors such as Exxon Mobil , Chevron and Total.

But those deals have angered the federal capital Baghdad, which rejects oil contracts offered by the Kurdistan region's government as illegal, and has blacklisted some firms that ventured north.

TAQA CEO Carl Sheldon declined to comment on the GEP deal, but said Kurdistan was attractive: "We like Iraq, there's a range of opportunities in the Kurdish region," he told Reuters in an interview in Abu Dhabi on Monday.

Earlier this year, TAQA bought a 50 percent stake in Kurdish power plant Chamchamal, having previously invested $46.6 mln in WesternZagros Resources to acquire 19.9 percent of the company, which has contracts for two blocks in the Iraqi Kurdish region.

GEP was not available to comment.

An Abu Dhabi source said the deal was "imminent", but gave no further details.

GEP, which has an 80 percent stake in the Atrush block in Kurdistan, said in September it had found a combined flow rate of 42,200 barrels of oil per day. The other 20 percent of the block is held by Marathon Oil Corp. (Additional reporting by Stanley Carvalho and Amena Bakr in Abu Dhabi; Editing by Patrick Markey and Mark Potter)

[burnsss]

According Iraqi oil report KRG has slashed oil exports down to 80 000 B/d. Reason is signs that Bagdad wont pay producers This comedy is never ending... Why do kurds keep trusting worthless promises and fake signatures?

[Anthea]

According Iraqi oil report KRG has slashed oil exports down to 80 000 B/d. Reason is signs that Bagdad wont pay producers This comedy is never ending... Why do kurds keep trusting worthless promises and fake signatures?

SORRY I do not know much about oil production

I thought that SK was selling its' own oil now?

Do you mean that all the fighting and killing the NOT NICE ARAB GENTLEMEN in Iraq still control Kurdish oil ? ? ?

I have had ENOUGH

It is time for SK to DECLARE TOTAL INDEPENDENCE and take control of its' own oil

The NOT NICE ARAB GENTLEMEN in Iraq can KISS THIS

[burnsss]

SORRY I do not know much about oil production

I thought that SK was selling its' own oil now?

Do you mean that all the fighting and killing the NOT NICE ARAB GENTLEMEN in Iraq still control Kurdish oil ? ? ?

I have had ENOUGH

It is time for SK to DECLARE TOTAL INDEPENDENCE and take control of its' own oil

The NOT NICE ARAB GENTLEMEN in Iraq can KISS THIS

Well as soon as the pipeline is finished it will be alot easier. Krg has only sold a small amount by trucking, but its growing Guess what? three major oil-refinre/oil companies bought kurdish ligh crude The latest being Lukoil a russian company, Lukoil is also the most likely candidate of replacing Exxon mobil who is going to kurdistan and leaving South . Bagdad cant do nothing because of its dependent on companies and their services (fuel, jet fuel and so on).

KRG is winning yet another battle.. , Kurds will do fine without Bagdad being involved,

[Anthea]

Well as soon as the pipeline is finished it will be alot easier. Krg has only sold a small amount by trucking, but its growing Guess what? three major oil-refinre/oil companies bought kurdish ligh crude The latest being Lukoil a russian company, Lukoil is also the most likely candidate of replacing Exxon mobil who is going to kurdistan and leaving South . Bagdad cant do nothing because of its dependent on companies and their services (fuel, jet fuel and so on).

KRG is winning yet another battle.. , Kurds will do fine without Bagdad being involved,

GOOD TO KNOW it is time things improved for the Kurdish economy, I will have to learn MUCH more

[burnsss]

The reason why the plane of turkish minister was not given permission to land...

ANKARA/ERBIL - Energy Minister Taner Yildiz is flying to Iraq's semi-autonomous region of Kurdistan amidst negotiations to finalize a massive deal for Turkish state-backed oil and gas development and the construction of pipelines.

Such cooperation would greatly bolster the Kurdistan Regional Government (KRG) in its quest for oil sector autonomy. It would also weaken Baghdad's claims of primary authority over oil contracting and exports at a time of increased tension, including an armed standoff in disputed ...