12% share of revenue?Does this sound right? This a news release from earlier this fall. Is it possible that LFD and VST's share of possible future revenues could be as low as 12% ?? I've seen lots of estimates of reserves and costs of production but no estimates on how big a % of revenues could possibly go to both levels of the government. If this news release is an initial standard for future agreements, that will suck.
Iraq approves Kurdistan oil contracts
According to Kurdish newspapers,
Iraq has approved an oil production contract between Kurdistan and foreign oil companies.
Iraqapproved an oil contract in Kurdistan that was awarded to Chinese oilgiant SINOPEC following its acquisition of the Swiss Adax Petroleum.
Investments in Taq-Taq oilfield will amount to $500 million. Themaximum production capacity [of the field] will be 180k bpd butproduction will start at 40k bpd. The crude will be transported to astorage facility via a 9km long pipeline that was recently built. Fromthere, tanker trucks will take the oil to the Kirkuk-Cehan pipeline.The oilfield is operated by the Turkish Genel Enerji and the Swiss Adaxcompanies as well as the government of Kurdistan. Genel Enerji and Adaxwill share 12% of export revenues while the remaining 88% will go tothe federal government through the Kurdish government in Kurdistan.