Wednesday, 22 August 2012

Total investing in Kurdistan oil despite threats

Source: Marketwatch

"Total has been seeking to get into Kurdistan simply because it sees there tremendous exploration potential, as much as the 30 or so oil companies which are already there," the person familiar with the matter said.

Following Total's entry into Kurdistan in July, Iraq's Deputy Prime Minister, Hussein al-Shahristani, told reporters in Baghdad that it must end its dealings with the semi-autonomous region or sell its stake in a major southern oil field, Halfaya, according to a report from Agence France Presse. He did not specify the time by which Total needed to make a decision.

Read the full article Total investing in Kurdistan oil despite threats

More on this story from Rudaw in English Kurdistan Resumes Oil Exports Despite Uncertainty of Baghdad’s Position

KRG’s Ministry of Natural Resources says that Baghdad owes oil companies working in the Kurdistan Region $1.5 billion.

“In this year’s budget, 650 billion Iraqi dinars has been set aside to compensate oil companies in Kurdistan and if a decision is made, it can be expended immediately,” Nabi said, clarifying that approval must come from the new oil committee.

Nabi believes Shahristani is the main obstacle to the payment being made. “Even though we have the authority to expend it, it would be considered a violation of the law because Shahristani opposed last year’s payment at the Council of Ministers.”

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