Partner to become operator - Excerpts Thanks uLYSESS for alerting us to the interview. It could be a challenge for some to access, so I have copied three excerpts that are the most relevant.
Excerpt 1:
Industry sources say the company is most likely Total . The French oil major has said it is considering possible investment in the semi-autonomous region, after ExxonMobil signed up for six exploration blocks late last year.
"Our Garmian block would be the single biggest piece," Hatfield said. "We're relying on getting about $55 million in back costs from the large European partner we're about to get, which will give the company funding through next year."
Excerpt 2:
The unidentified European major will eventually take over as operator, Hatfield said.
"They had their lawyers in Calgary last week doing their final legal due diligence with our lawyers," he said. "But ours is not the only deal this company is looking at - that's why it's taking so long."
As many as six blocks could be included in the package the European major wants to present to its executive committee.
"It's a big company and they want a material position," said the chief executive. "There's not a lot left, so they've got to piece it together."
Excerpt 3:
"We were part of the early movers in Kurdistan and now it's a very crowded space," said Hatfield.
As a result, there's a high price to pay for entry.
Arbil is asking for a bonus of close to $100 million for Garmian, plus a percentage - believed to be around 20 percent - of the European company's profit oil allocation that will be dedicated to infrastructure development.
Excerpt 4:
Hatfield said the company was looking to further develop its Kurdish assets and was not looking be bought out. The Abu Dhabi National Energy Co bought a 19.9 percent stake in the explorer late last year.
"We're funded to carry on. We believe the next few wells we're going to drill will not only dramatically increase production, but dramatically increase the proven reserves that we have," he said.
"Now is not the time to sell the company."