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Foreign companies digging oil wells in Kurdistan
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Al Sumaria - [7/1/2007]
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Foreign oil companies are searching for new oil rich lands in Kurdistan region where oil investments have been poor for many years. In Taq Taq region, which surface extends for about 600 square kilometers, Topco Turkish Company has started excavation works and has so far dug three oil wells which are supposed to produce 75 000 oil barrels a day. It started digging as well three other wells due to finish at the end of the current year.
Oil reserves in Kurdistan represent 2.9 % of Iraq oil reserves which is estimated at 115 billion barrels. However, experts expect to uncover more oil sources in Kurdistan region.
Oil companies are entitled to dig and excavate in return of a determined share allocated to the local government while the new oil and gas law expected to be discussed by the Parliament includes a Federal Council to supervise investments and signing contracts with foreign companies.
For his part, Iraqi Oil Minister Hussein Al Shahristani announced that contracts signed under the current law or the new law if not ratified yet would not be acknowledged. Al Shahristani called on the companies to restraint from signing new contracts before ratifying the new law and without the approval of the Federal Oil and Gas Council.
On the other hand, foreign oil companies in Kurdistan region are still facing the problem of exporting crude oil as they should wait for the new law to be ratified in order to negotiate over exports permit through pipelines connecting Iraq with Turkish Jihan Port. Thus, Kurdish officials have turned into another alternative that directly links Taq Taq region to the Turkish borders. Kurdistan region is expected to receive nearly 17 % of Iraq’s overall revenues in virtue of an agreement concluded between Kurdistan’s region and Baghdad Central Government.
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