TSXV:ART.H - Post by User
Comment by
Baxter4on Apr 13, 2011 1:07pm
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Post# 18425352
RE: RE: Heritage Oil's published OIP and resources
RE: RE: Heritage Oil's published OIP and resourcesThe latter includes gas or gas liquids. If it is gas, I guess no foreign oil exploration company now in Kurdistan has the appetite to develop it, as it is just not worth the effort considering that 90% of the already paper-thin profits will be handed over to the Kurdish government according to the contractual agreement. The only thing that's of value is the actual amount of oil in the BOE.
Granted Oil is worth more per BOE and can be sold much sooner after discovery but NG is certainly not worthless. The Nabucco pipeline is supposed to be ready to supply Europe from Iraq in 2015 plus NG is worth much more in Europe than in North America.
I'm not sure where you got the information on how 90% of NG revenue will be handed over to the Kurdish Government. From what I've seen, the royalty on NG is the same as oil, 15% for Vast. Is there a separate section which deals with gas in the agreement?
From an article about a month ago:
Kurdistan gas and the Nabucco Project
The Nabucco project is a vital element of Europe's attempts to strengthen ties with Central Asian countries and break free from Russia's grip on gas supplies. Due to its shared border with Turkey,which is on the pipeline route and one of the six shareholders in the project, the Kurdistan Region is in a prime position to supply the pipeline.
Hawrami said gas discovered in Kurdistan would first help to solve Iraq's chronic electricity shortages and then provide an importantsource of revenue for the federal government through exports to Turkey,Europe and beyond. "New gas discoveries to date total to 20 trillion cubic feet," said Hawrami. He added that the Kurdistan government isworking to develop a further 5000 MW of electricity, in addition to the current domestic plan of 2000 MW. "This is for the supply for both the Kurdistan governorates and to our neighboring provinces of Mosul, Kirkukand Salahaddin.
He mentioned that Kurdistan can feed Europe with gas for 70-80 years.