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Strongbow11on Dec 19, 2010 5:43pm
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Kurdistan expects to resume oil exports in early 2
Kurdistan expects to resume oil exports in early 2
Kurdistan expects to resume oil exports in early 2011
By Grant Smith - Nov 30, 2010
The Kurdistan Regional Government in northern Iraq will resume oilexports in early 2011, Kurdish Natural Resources Minister Ashti Hawramisaid.
Oil supplies from the semi-autonomous area halted ayear ago as it failed to reach an agreement with Iraq’s government onhow to pay operators such as DNO International ASA and Addax PetroleumCorp. Iraq’s main political factions are forming a coalition to endeight months of deadlock following inconclusive elections. A cabinetwill be appointed before Christmas, government spokesman Ali Al-Dabbaghsaid yesterday.
Hawrami said the 38 contracts signed by the KRG withforeign oil companies will “stand” under Iraq’s new oil law, likely tobe enacted by June. Legislation to be passed will incorporate, possiblyamend and legitimize the KRG’s contracts, previously consideredinvalid, according to Al-Dabbagh.
“Iraq needs to be rebuilt,” Hawrami said in a speech atthe Iraq Petroleum conference in London. “We need to put the past fouryears of dogma behind us.”
The KRG’s deals allocate a share of the oil produced toforeign companies while those adopted by the national Oil Ministry paya per-barrel fee. Hawrami said that the KRG will consider adjustmentsto its agreements.
Turkey Supply
Kurdistan cansupply 100,000 barrels a day to Iraq’s northern export pipeline toTurkey and aims to boost production to 1 million barrels a day over thenext three years. Iraq’s 2011 budget assumes exports of 150,000 barrelsa day from Kurdistan, Al-Dabbagh said.
In June, Hawrami had said that Kurdish exports wouldresume soon following a provisional accord on payments between the KRGand Baghdad.
Before exports halted last year, revenue for oil pumpedby firms in Kurdistan were collected by the national government’s StateOil Market Organization. The companies are still owed $400 million to$500 million in unpaid revenue, Hawrami said today.
Iraq aims to more than double its current oil output of2.4 million barrels a day over the next four years and has said it haspotential to reach 12 million a day during the next seven years.
Hawrami said that a “realistic” production target is between 4 million and 6 million barrels a day.